Hagens Berman Investigates Natus Medical Inc.’s Guidance on Prepayments From the Venezuelan Government & the Timing of Insi...
April 22 2016 - 8:30AM
Business Wire
Hagens Berman Sobol Shapiro LLP, a national investor-rights law
firm, is investigating whether Natus Medical Incorporated. (NASDAQ:
BABY) issued false and misleading statements about its expected
receipt of prepayments under a contract with the Venezuelan
Government and the timing of certain insiders’ stock sales,
potentially in violation of the securities laws.
If you have significant losses in your investments in Natus
Medical Inc. or have knowledge relevant to the investigation,
contact Hagens Berman Partner Reed Kathrein, who is leading the
firm’s investigation by calling 510-725-3000, emailing
BABY@hbsslaw.com or visiting
https://www.hbsslaw.com/cases/BABY.
On October 15, 2015, Natus announced its entry into a supply
agreement with the Venezuelan government to provide medical
equipment, supplies and services over a three-year period. The
Company stated “[p]repayments totaling approximately $69 million
are expected by the first quarter of 2016” and “[i]f fully
performed, the total sales under the agreement would aggregate
$232.5 million.” Over the next 5 ½ months, Natus received no
Venezuelan prepayments and twice reduced its revenue guidance
shortly after its CEO and CFO sold significant amounts of their
shares in the Company.
First, on January 11, 2016, and having received no Venezuelan
prepayments, Natus reduced fourth quarter 2015 revenue guidance
from $102 - $105 million to approximately $100 million. That day,
Natus’ stock closed at $38.25 per share or over 11% lower than the
previous closing price of $43.20 per share on January 8, 2016.
Second, on April 4, 2016, and having received no prepayments,
Natus reduced its first quarter 2016 revenue guidance from $91.5 -
$92.5 million. That day, Natus’ stock closed at $31.84 per share,
or over 19% lower than the previous close on April 1 of $39.64 per
share.
“Among other things, we’re concerned about the insider selling,
especially in view of the Company’s stated expectation of receiving
prepayments, its failure to receive any, its twice-reduced guidance
and the effect on the stock price,” said Hagens Berman partner Reed
Kathrein.
Whistleblowers: Persons with non-public information
regarding Natus should consider their options to help in the
investigation or take advantage of the SEC Whistleblower program.
Under the new SEC whistleblower program, whistleblowers who provide
original information may receive rewards totaling up to 30 percent
of any successful recovery made by the SEC. For more information,
call Reed Kathrein at 510-725-3000 or email
BABY@hbsslaw.com.
About Hagens Berman
Hagens Berman is headquartered in Seattle, Washington with
offices in 10 cities. The Firm represents investors,
whistleblowers, workers and consumers in complex litigation. More
about the Firm and its successes can be found at www.hbsslaw.com.
Read the Firm’s Securities Newsletter, and visit the blog. For the
latest news visit our newsroom or follow us on Twitter at
@classactionlaw.
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version on businesswire.com: http://www.businesswire.com/news/home/20160422005153/en/
Hagens Berman Sobol Shapiro LLPReed Kathrein, 510-725-3000
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