Jury Finds CareDx and Natera Engaged in False Advertising

Rhea-AI Summary

A jury in Delaware District Court ruled that both CareDx and Natera engaged in false advertising. CareDx misled investors and physicians regarding its funding of a scientific publication, which it falsely claimed was independent. Additionally, there were no findings regarding the scientific validity of Natera's data. In parallel litigation, a federal court invalidated all patents that CareDx asserted against Natera, who is pursuing its own patent enforcement. Final monetary relief from the jury's decision is still pending.

Positive

• Natera continues to pursue its own patent enforcement action against CareDx after a federal court invalidated all CareDx's asserted patents.

Negative

• CareDx was found to have engaged in false advertising, which could damage its reputation and investor trust.
• Natera may face ongoing uncertainty due to the litigation and associated risks.

AUSTIN, Texas, March 15, 2022 /PRNewswire/ -- A jury in Delaware District Court found that both CareDx, Inc. and Natera, Inc. engaged in false advertising – including that CareDx made materially false statements about its involvement in and funding of a scientific publication. Specifically, the evidence showed that CareDx senior leadership misled investors and physicians regarding CareDx's drafting and funding of a paper that they claimed was independent, when it was not. Final monetary relief, if any, remains to be decided by the Court.  

In reporting the jury's decision, CareDx omits that CareDx itself was found to have engaged in false advertising, and makes unsubstantiated allegations, including false assertions regarding Natera's executives.  

In addition, there has been no finding regarding the scientific validity of Natera's published data and test performance.

In other litigation between the parties, a federal court recently invalidated all the patents that CareDx asserted against Natera. Natera continues to pursue its own patent enforcement action against CareDx.

About Natera

Natera™ is a global leader in cell-free DNA testing, dedicated to oncology, women's health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health, and inform earlier, more targeted interventions that help lead to longer, healthier lives. Natera's tests are validated by more than 100 peer-reviewed publications that demonstrate high accuracy. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas and San Carlos, California. For more information, visit www.natera.com.

Forward-Looking Statements

All statements other than statements of historical facts contained in this press release are forward-looking statements and are not a representation that Natera's plans, estimates, or expectations will be achieved. These forward-looking statements represent Natera's expectations as of the date of this press release, and Natera disclaims any obligation to update the forward-looking statements. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including with respect to developments in matters under dispute or litigation, and the scope of protection we establish and maintain for, and developments or disputes concerning, our intellectual property or other proprietary rights. Additional risks and uncertainties are discussed in greater detail in "Risk Factors" in Natera's recent filings on Forms 10-K and 10-Q and in other filings Natera makes with the SEC from time to time. These documents are available at www.investor.natera.com and www.sec.gov.

Contacts
Investor Relations: Mike Brophy, CFO, Natera, Inc., 510-826-2350
Media: Communications, Natera, Inc., pr@natera.com

 

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SOURCE Natera, Inc.

FAQ

What was the outcome of the jury's decision regarding Natera on March 15, 2022?

The jury found that both CareDx and Natera engaged in false advertising, specifically that CareDx misled regarding its involvement in a scientific publication.

What legal challenges is Natera currently facing?

Natera is involved in ongoing litigation with CareDx, including pursuing its own patent enforcement action.

Did the jury find any issues with Natera's published data?

No findings regarding the scientific validity of Natera's published data were established during the jury's decision.

What implications does the jury's ruling have for CareDx?

The ruling may harm CareDx's reputation and investor trust, as they were found to have engaged in false advertising.