The United States District Court for the Central District of California has granted final approval to the securities litigation class action filed against NantHealth, Inc. and certain of its executives and directors. The suit alleged violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
Initiated on June 26, 2017, the case saw the Southern Pennsylvania Transit Authority appointed as lead plaintiff with the Kehoe Law Firm appointed co-lead counsel. The lawsuit claimed that NantHealth and its officers and directors misled investors by overstating the market demand for NantHealth’s genetic sequencing services. The lawsuit also claimed that NantHealth made false statements or omitted material information from its financial statements and in other public statements. NantHealth and its officers and directors deny they did anything wrong.
The Court granted class certification on July 30, 2019, and on January 31, 2020, preliminarily approved the settlement. The approved settlement establishes a $16,500,000.00 common fund for investors, less attorney fees and expenses.
The Court found the proposed pro rata distribution fair and adequate, especially considering the absence of objections from class members. The requested attorneys’ fees of 25% were deemed presumptively reasonable given the complexity of the case. Additionally, the court granted SEPTA a $5,000.00 incentive award for its substantial efforts in the case.
John Kehoe, lead counsel from the Kehoe Law Firm, remarked, “This settlement is a testament to the diligent efforts of all involved parties. The approved terms reflect a fair and just resolution for the class members. We are pleased with the Court’s decision and believe it underlines the strength of our case.”
For more information, visit www.NantHealthSecuritiesLitigation.com, call 1-844-975-1779, or write to the Settlement Administrator, NantHealth, Inc. Securities Litigation, c/o JND Legal Administration, PO Box 91125, Seattle, WA 98111.
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.