jury rule That Nateraa cell-free DNA testing company whose executives recklessly and deliberately misrepresented the benefits of Natera’s kidney transplant rejection assessment test: Prospera and engaged in false advertising.
in South San Francisco CareDxA precision medicine company serving transplant patients sued Austin, Texas-based Natera in 2019 for falsely advertising its product and likening it to CareDx’s. At the heart of both Prospera and AlloSure are blood tests that can assess the risk of kidney transplant rejection.
This week, a jury ordered Natera to pay CareDx $44.9 million in damages in the false advertising case, including $23.7 million in punitive damages and another $21.2 million in compensatory damages.
“Today is a landmark day for the transplant community as patient care and science triumph over false advertising,” CareDx CEO Reg Seeto said in a statement Statement on Monday“We are disappointed to see the extent to which Natera’s systematic approach misleads transplant clinicians from the highest levels, including the CEO. Evidence suggests that Natera’s Prospera marketing campaign is considered deceptive, to the extent that it misleads transplant clinicians. Make false statements and put profits over science.”
However, CareDX, a publicly traded company like Natera, hasn’t had it all smooth sailing. The jury agreed with Natera that CareDx was involved in two reports of false advertising — one involving a CareDx press release that touted the fact that independent research found its AlloSure product to be more accurate and faster than competing products.For the second claim, the jury agreed with Natera that CareDx misquoted a study AlloSure on CareDx claims this is an independent study.
Although the jury verdict required it to pay nearly $45 million, Natera caught CareDx’s blunder in its own press release following the jury’s decision.
A Delaware District Court jury found that both CareDx, Inc. and Natera, Inc. engaged in false advertising, including CareDx making material misrepresentations about its participation in and funding of scientific publications,” Natera said in a statement. Press release. “Specifically, there is evidence that senior CareDx leadership misled investors and physicians about CareDx’s drafting and funding of a dissertation they claimed was an independent, when that was not the case. Final monetary relief (if any) ) remains to be decided by the court.
Natera also took aim at CareDx’s own narrow coverage of the jury’s decision.
In reporting the jury’s decision, CareDx ignored that CareDx itself was found to have engaged in false advertising and made unsubstantiated allegations, including false assertions against Natera executives.
Meanwhile, other lawsuits between the two continue. Natera announces that a federal court has invalidated CareDx’s asserted patents. Natera also filed its own patent lawsuit against CareDx. In other words, the fireworks will continue in the short term.
Photo: zimmytws, Getty Images
