CareDx Wins $44.9M in Damages in False Advertising Trial Against Natera; Natera Intentionally Deceived Transplant Community

Rhea-AI Summary

CareDx Wins False Advertising Case Against Natera

In a landmark ruling on March 14, 2022, CareDx (CDNA) secured a significant victory against Natera (NTRA), with a jury awarding CareDx $44.9 million for false advertising related to Natera's kidney transplant assessment test, Prospera. The jury found Natera liable for intentional false advertising and unfair competition, highlighting misleading statements made by its senior executives. CareDx's AlloSure technology, the only FDA-validated dd-cfDNA test for transplant surveillance, remains a standard of care in over 150 U.S. centers.

Positive

• Awarded $44.9 million in damages ($21.2 million compensatory, $23.7 million punitive).
• Strengthened position in the transplant market by exposing Natera's misleading marketing practices.
• AlloSure technology is validated and serves as a standard of care in over 150 U.S. transplant centers.

Negative

• None.

Jury Finds Natera Falsely Advertised its Prospera Kidney Transplant Technology Jury Finds CareDx Advertising of AlloSure to be Accurate and Truthful

SOUTH SAN FRANCISCO, Calif., March 14, 2022 (GLOBE NEWSWIRE) -- CareDx, Inc. (Nasdaq: CDNA), a leading precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers, today announced that the Company won its false advertising case against Natera (Nasdaq: NTRA) as a jury found that Natera and its senior executives 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. CareDx was awarded monetary damages totaling $44.9M: $21.2M in compensatory damages and $23.7M in punitive damages.

Overwhelming evidence emerged at trial that demonstrated that Natera made false statements that its senior executives knew were based on unscientific, unreliable, and inappropriate conclusions to market Prospera. The trial underscored the value of AlloSure’s clinical excellence as the only donor-derived cell-free DNA (dd-cfDNA) test that has prospective, multicenter validation published.

Commenting on the verdict, CareDx Chief Executive Officer Dr. Reg Seeto stated: “Today was a landmark day for the transplant community because patient care and science won over false advertising. We were dismayed to see the extent of Natera’s systematic approach, from the most senior levels including the CEO, to mislead the transplant clinician. The evidence showed Natera’s Prospera marketing campaign was conceived to deceive by making false statements to transplant clinicians that prioritized profits over science. We hope today’s verdict sends a clear message that CareDx will always fight for patients and work tirelessly to maintain trust in the transplant community.”

The jury found Natera liable for false advertising based on Natera’s false comparisons of its kidney transplant assessment test, Prospera, to CareDx’s market-leading AlloSure technology. Specifically, the jury found Natera liable for:

• False advertising under the Lanham Act
• False advertising under the Delaware Deceptive Trade Practices Act
• Intentional and willful engagement in false advertising
• Intentional or reckless engagement in unfair competition

AlloSure is a dd-cfDNA test for noninvasive transplant surveillance, providing a direct measure of organ injury and reducing the need for invasive biopsies. It is an emerging standard of care for kidney transplant patients, used in over 150 U.S. transplant centers and over 30,000 patients

About CareDx – The Transplant Company
CareDx, Inc., headquartered in South San Francisco, 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.

CONTACTS:

CareDx, Inc.
Sasha King
Chief Marketing Officer
415-287-2393
sking@caredx.com

Investor Relations
Ian Cooney
(415) 722-4563
investor@CareDx.com

FAQ

What was the verdict in the CareDx vs. Natera case?

CareDx won the case, with a jury finding Natera liable for false advertising and awarding CareDx $44.9 million.

How much was CareDx awarded in the lawsuit against Natera?

CareDx was awarded $44.9 million, consisting of $21.2 million in compensatory damages and $23.7 million in punitive damages.

What are the implications of the jury's decision for CareDx?

The verdict enhances CareDx's credibility and market position while exposing false advertising in the transplant community.

What products are involved in the CareDx and Natera lawsuit?

The lawsuit involved CareDx's AlloSure and Natera's Prospera kidney transplant assessment tests.

When was the verdict announced in the CareDx vs. Natera case?

The verdict was announced on March 14, 2022.