CareDx Announces District Court Judge Bars Natera from Falsely Advertising and Overstating the Scientific Performance of its Prospera Transplant Test

Rhea-AI Summary

CareDx, Inc. announced that the United States District Court issued an injunction prohibiting Natera from falsely advertising and overstating the scientific performance of its Prospera transplant test. The court upheld the jury's decision that Natera violated the Lanham Act by engaging in false advertising. Natera made nine false advertising claims regarding its Prospera test.

BRISBANE, Calif.--(BUSINESS WIRE)-- CareDx, Inc. (Nasdaq: CDNA) – The Transplant Company™ focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers – today announced that the United States District Court for the District of Delaware (the “District Court”) issued an injunction prohibiting Natera (Nasdaq: NTRA) from continuing to falsely advertise and overstate the scientific performance of its Prospera transplant test. A copy of the injunction is available here.

The injunction follows the July 17, 2023, decision by the District Court to uphold and reaffirm the March 2022 jury verdict finding that Natera (Nasdaq: NTRA) violated the Lanham Act by falsely advertising the scientific performance of its Prospera transplant test. At the conclusion of the March 2022 trial, the jury found that Natera intentionally and recklessly misled the transplant community by deliberately engaging in false advertising in the promotion and marketing of its Prospera kidney transplant rejection assessment test. Overwhelming evidence emerged at trial that demonstrated that Natera made false statements to market Prospera that its senior executives knew were based on unscientific, unreliable, and inappropriate conclusions.

On July 17, 2023, the District Court upheld the jury’s prior decision that Natera made nine false advertising claims about its Prospera kidney transplant test and false advertising comparisons to CareDx’s AlloSure® Kidney to the transplant community. CareDx notes that the Company intends to appeal the District Court’s decision regarding the monetary damages awarded by the jury.

This injunction is a win for the transplant community because patient care and science won over false advertising.

About CareDx – The Transplant Company

CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com.

Forward Looking Statements

This press release includes forward-looking statements related to CareDx, Inc., including statements regarding CareDx’s false advertising claim against Natera and the company’s plan to appeal the district court decision to dismiss the jury’s monetary damages award (the “Appeal”). These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks that CareDx fails to carry on the Appeal as planned or fails to achieve desirable results in the Appeal; general economic and market factors; and other risks discussed in CareDx’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed by CareDx with the SEC on February 27, 2023, the quarterly report on Form 10-Q for the quarter ended March 31, 2023 filed by CareDx with the SEC on May 10, 2023, and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230807783593/en/

CareDx, Inc.

Media Relations

Anna Czene

818-731-2203

aczene@caredx.com

Investor Relations

Greg Chodaczek

investor@caredx.com

Source: CareDx, Inc.

FAQ

What is the company involved in the press release?

The company involved in the press release is CareDx, Inc.

What is the injunction about?

The injunction prohibits Natera from falsely advertising and overstating the scientific performance of its Prospera transplant test.

What law did Natera violate?

Natera violated the Lanham Act by engaging in false advertising.

What did the jury find in the trial?

The jury found that Natera intentionally and recklessly misled the transplant community by engaging in false advertising for its Prospera kidney transplant rejection assessment test.

How many false advertising claims did Natera make?

Natera made nine false advertising claims regarding its Prospera test.