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Federal Court Jury Issues Unanimous Verdict that Natera Engaged in False Advertising and Unfair Competition in Deliberate Attempt to Damage Guardant Health's Colorectal Cancer Test, Guardant Reveal™

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A federal court jury unanimously ruled in favor of Guardant Health in its lawsuit against Natera for false advertising and unfair competition. The jury awarded $292.5 million to Guardant Health, including $175.5 million in punitive damages, making it one of the largest false advertising verdicts in history. The case, filed in May 2021, centered on Natera's deliberate campaign to mislead cancer clinicians about Guardant Reveal™, a tissue-free minimal residual disease test for early-stage colorectal cancer. The jury rejected all of Natera's counterclaims.

Una giuria federale ha deciso all'unanimità a favore di Guardant Health nella sua causa contro Natera per pubblicità ingannevole e concorrenza sleale. La giuria ha assegnato a Guardant Health 292,5 milioni di dollari, di cui 175,5 milioni di dollari come danni punitivi, rendendo questo verdetto uno dei più grandi nella storia per pubblicità ingannevole. Il caso, presentato nel maggio 2021, si è concentrato sulla campagna deliberata di Natera per ingannare i professionisti oncologici riguardo a Guardant Reveal™, un test per la malattia residua minima senza tessuto per il cancro colorettale in fase iniziale. La giuria ha respinto tutte le controvertenze di Natera.

Un jurado federal decidió unánimemente a favor de Guardant Health en su demanda contra Natera por publicidad engañosa y competencia desleal. El jurado otorgó a Guardant Health 292,5 millones de dólares, incluidos 175,5 millones de dólares en daños punitivos, lo que lo convierte en uno de los veredictos de publicidad engañosa más grandes de la historia. El caso, presentado en mayo de 2021, se centró en la campaña deliberada de Natera para engañar a los clínicos del cáncer sobre Guardant Reveal™, una prueba de enfermedad residual mínima sin tejido para el cáncer colorrectal en etapa temprana. El jurado rechazó todas las contrademandas de Natera.

연방 배심원단은 Guardant Health가 Natera를 상대로 한 허위 광고 및 불공정 경쟁 소송에서 만장일치로 판단했습니다. 배심원단은 Guardant Health에게 2억 9천 2백 50만 달러를 신탁하였으며, 이중 1억 7천 5백 50만 달러는 징벌적 손해배상으로, 이는 역사상 가장 큰 허위 광고 판결 중 하나입니다. 2021년 5월에 제기된 이 사건은 Natera가 Guardant Reveal™에 대해 암 임상의사들을 잘못 오도하려는 의도적인 캠페인에 초점을 맞췄습니다. 배심원단은 Natera의 반대 주장들을 모두 기각했습니다.

Un jury fédéral a statué à l'unanimité en faveur de Guardant Health dans sa poursuite contre Natera pour publicité mensongère et concurrence déloyale. Le jury a attribué à Guardant Health 292,5 millions de dollars, y compris 175,5 millions de dollars en dommages-intérêts punitifs, ce qui en fait l'un des plus grands verdicts pour publicité trompeuse de l'histoire. L'affaire, déposée en mai 2021, portait sur la campagne délibérée de Natera pour induire en erreur les cliniciens cancérologiques au sujet de Guardant Reveal™, un test sans tissu pour la détection de la maladie résiduelle minimale dans le cancer colorectal à un stade précoce. Le jury a rejeté toutes les contre-demandes de Natera.

Eine Jury eines Bundesgerichts entschied einstimmig zugunsten von Guardant Health in ihrer Klage gegen Natera wegen falscher Werbung und unlauterem Wettbewerb. Die Jury sprach Guardant Health 292,5 Millionen Dollar zu, darunter 175,5 Millionen Dollar an strafschadensersatz, was es zu einem der größten Urteile wegen falscher Werbung in der Geschichte macht. Der Fall, der im Mai 2021 eingereicht wurde, konzentrierte sich auf Nateras bewusste Kampagne, um Onkologen über Guardant Reveal™, einen gewebefreien Test auf minimale Restkrankheit bei frühzeitigem kolorektalen Krebs, irrezuführen. Die Jury wies alle Gegenklagen von Natera zurück.

Positive
  • Awarded $292.5 million in damages, including $175.5 million in punitive damages
  • Complete legal victory with unanimous jury verdict on all claims
  • Validation of Guardant Reveal™ test's market position in colorectal cancer diagnostics
Negative
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Insights

This verdict represents a significant legal precedent in the medical diagnostics industry. The $292.5 million award, including $175.5 million in punitive damages, is exceptionally large for a false advertising case, indicating the jury found Natera's conduct particularly egregious. The unanimous decision on all claims strengthens Guardant Health's market position and validates their Reveal™ test's credibility.

The ruling will likely have broad implications for competitive practices in the diagnostic testing market. It sets a strong precedent against misleading marketing tactics and could deter similar behavior across the industry. For Guardant Health, this verdict not only provides substantial monetary compensation but also removes a significant market headwind that was impeding the adoption of their colorectal cancer test.

This verdict substantially strengthens Guardant Health's competitive position in the minimal residual disease (MRD) testing market. The ruling effectively validates Guardant Reveal™'s legitimacy while dealing a significant reputational blow to Natera's Signatera™. The financial impact extends beyond the immediate monetary award - it should accelerate market adoption of Reveal™ by removing doubts previously created by Natera's marketing claims.

The MRD testing market represents a multi-billion dollar opportunity, particularly in colorectal cancer screening. This verdict could help Guardant capture a larger market share and potentially accelerate revenue growth in their diagnostic segment. The substantial punitive damages also strengthen Guardant's balance sheet, providing additional resources for market expansion and product development.

Guardant Health Secures One of the Largest False Advertising Verdicts in History, Representing a Significant Victory for Colorectal Cancer Patients Who Could Benefit from Guardant Reveal™

Natera Found to Have Willfully Misled Oncologists in an Effort to Thwart Competition

PALO ALTO, Calif., Nov. 25, 2024 /PRNewswire/ -- Guardant Health, Inc. (Nasdaq: GH) ("Guardant Health"), a leading precision oncology company, today announced that a jury in the U.S. District Court for the Northern District of California (the "Court") unanimously found in favor of Guardant Health on all of its claims from its May 2021 lawsuit against Natera, Inc. (Nasdaq: NTRA) ("Natera") for false advertising and unfair competition. The jury awarded $292.5 million to Guardant Health, including $175.5 million in punitive damages, representing one of the largest false advertising verdicts in history. The jury unanimously rejected all of Natera's counterclaims.

The jury found that Natera engaged in a deliberate campaign to mislead cancer clinicians about Guardant Reveal™ – Guardant Health's tissue-free minimal residual disease (MRD) test for early-stage colorectal cancer (CRC) – in favor of Signatera™, Natera's competing product. 

"Today's unanimous verdict holding Natera responsible for engaging in illegal and anticompetitive conduct represents a major victory for CRC patients who could benefit from our groundbreaking Reveal test, and we thank the jury and the Court for their careful consideration of our claims," said John Saia, Chief Legal Officer at Guardant Health. "Every company in the cancer diagnostics space has a duty to prioritize patients above all else. In keeping with our mission to help cancer patients lead longer and healthier lives, we strongly believe it is vital that clinicians receive accurate, complete, and truthful information to inform their decisions about potentially life-saving patient treatments."

About Guardant Health

Guardant Health is a leading precision oncology company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care and accelerating new cancer therapies by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and treatment selection for patients with advanced cancer. For more information, visit guardanthealth.com and follow the company on LinkedInX (Twitter) and Facebook.

Investor Contact:
Zarak Khurshid
investors@guardanthealth.com

Media Contact:
Beau Falgout / Chris Patz
Inquiries@augustco.com
+1 323-892-5551

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SOURCE Guardant Health

FAQ

What was the verdict amount in Guardant Health's (GH) lawsuit against Natera?

The jury awarded Guardant Health $292.5 million, including $175.5 million in punitive damages.

When did Guardant Health (GH) file the false advertising lawsuit against Natera?

Guardant Health filed the lawsuit in May 2021.

What was the subject of Guardant Health's (GH) lawsuit against Natera?

The lawsuit was about false advertising and unfair competition regarding Guardant Reveal™, a tissue-free minimal residual disease test for early-stage colorectal cancer.

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