UPDATE -- 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

CareDx (Nasdaq: CDNA) has successfully won a false advertising lawsuit against Natera (Nasdaq: NTRA), with the jury awarding CareDx $44.9 million in damages. The jury found that Natera engaged in false advertising regarding its Prospera kidney transplant rejection assessment test, misleading the transplant community. CareDx's AlloSure technology was upheld as the trusted standard in this domain. This ruling reinforces CareDx's commitment to scientific integrity and patient care in the transplant sector.

Positive

• CareDx awarded $44.9 million in damages ($21.2 million in compensatory damages and $23.7 million in punitive damages).
• Jury confirmed CareDx's AlloSure as the only validated donor-derived cell-free DNA test.
• Verdict reinforces CareDx's reputation and commitment to patient care in the transplant community.

Negative

• None.

Jury Finds Natera Falsely Advertised its Prospera Kidney Transplant Technology

SOUTH SAN FRANCISCO, Calif., March 23, 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 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. The jury did not find CareDx liable for false advertising under the Delaware Deceptive Trade Practices Act, or intentional and willful false advertising or unfair competition. Notably, the jury rejected all of Natera’s challenges to AlloSure performance claims.

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 outcome of the CareDx vs Natera case regarding false advertising?

CareDx won the case, receiving $44.9 million in damages after the jury found Natera liable for false advertising.

How much was CareDx awarded in damages against Natera?

CareDx was awarded $44.9 million, which includes $21.2 million in compensatory damages and $23.7 million in punitive damages.

What is the significance of the CareDx lawsuit victory for transplant patients?

The victory reinforces CareDx's commitment to patient care and the scientific integrity of their transplant technologies.

What claims did the jury reject during the CareDx trial against Natera?

The jury found CareDx not liable for false advertising under the Delaware Deceptive Trade Practices Act and rejected Natera's challenges to AlloSure's performance claims.

What is AlloSure and how is it viewed in the transplant community?

AlloSure is a validated dd-cfDNA test for noninvasive organ injury surveillance, recognized as the emerging standard of care for kidney transplant patients.