Cases
Natus Medical Incorporated (NASDAQ: BABY)
Securities Class Action
Overview
Overview
- Date:
- 2/2/2017
- Company Name:
- Natus Medical Incorporated
- Stock Symbol:
- BABY
- Class Period:
- FROM 10/16/2015 TO 4/3/2016
- Status:
- Closed/Complete
NEW YORK, February 2, 2017 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who acquired Natus Medical Incorporated (NASDAQ: BABY) securities between October 16, 2015 and April 3, 2016 (the “Class Period”).
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the risk of unfulfilled payments from its contract with Venezuela’s Ministry of Health leading to a material decline in the Company’s revenues and profitability.
First, on October 16, 2015, Natus announced that its Argentinian subsidiary had entered into a three-year supply contract with the Ministry of Health of Venezuela pursuant to which the Company would receive $232.5 million, including $69 million in prepayments “expected” during the first quarter of 2016.
Then, on April 4, 2016, the Company announced lower-than-expected preliminary 2016 first quarter revenue of about $87.5 million, lower than its previous guidance of $91.5 million to $92.5 million, and below analysts’ expectations. The Company cited the previously unexpected cancellation of payments in key Venezuelan government supply contracts as a reason for the disappointing results.
If you purchased or otherwise acquired Natus securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the risk of unfulfilled payments from its contract with Venezuela’s Ministry of Health leading to a material decline in the Company’s revenues and profitability.
First, on October 16, 2015, Natus announced that its Argentinian subsidiary had entered into a three-year supply contract with the Ministry of Health of Venezuela pursuant to which the Company would receive $232.5 million, including $69 million in prepayments “expected” during the first quarter of 2016.
Then, on April 4, 2016, the Company announced lower-than-expected preliminary 2016 first quarter revenue of about $87.5 million, lower than its previous guidance of $91.5 million to $92.5 million, and below analysts’ expectations. The Company cited the previously unexpected cancellation of payments in key Venezuelan government supply contracts as a reason for the disappointing results.
If you purchased or otherwise acquired Natus securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.