Deora v. NantHealth, Inc.
NantHealth, Inc. Securities Litigation

Frequently Asked Questions


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  • You or someone in your family may have purchased or otherwise acquired shares of NantHealth common stock between June 1, 2016, and May 1, 2017. 

    The Court has ordered the notice because you have a right to know about a approved settlement (the Settlement) of a class action lawsuit (the Action) and about your options, before the Court decides whether to approve the Settlement. If the Court approves the Settlement and after objections and appeals (if any) are resolved, an administrator appointed by the Court will make the payments that the Settlement allows. You can be informed of the progress of the Settlement by calling the toll-free number or visiting the "Important Documents" page of this website.

    The notice explains the Action, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

    The Court in charge of the case is the United States District Court for the Central District of California, and the case is known as Deora v. NantHealth, Inc., No. 2:17-cv-01825-TJH-MRW.  The people who sued are called Plaintiffs, and the entities and individuals they sued, NantHealth, Inc., Patrick Soon-Shiong, Paul Holt, Michael S. Sitrick, Kirk K. Calhoun, Mark Burnett, Edward Miller and Michael Blaszyk, are called the Defendants.

  • The lawsuit claims that NantHealth and some of 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.

  • In a class action lawsuit, one or more persons or entities, called Class Representatives (in this case the Southeastern Pennsylvania Transportation Authority, or SEPTA, which is referred to in the following FAQ's as Plaintiff or as the Class Representative), sue on behalf of people or entities who have similar claims. All these people and entities are a Class or Class Members. One court resolves the issues for all Class Members, except those who exclude themselves from the Class. U.S. District Judge Terry J. Hatter is in charge of this class action.

  • The Court did not decide in favor of Plaintiff or Defendants.  Plaintiff thinks it could have won $2.41 per share if it won at trial (amounting to approximately $40,935,148 in total for the Classes). That best-case scenario assumes Plaintiff would have defeated Defendants’ appeal of class certification, survived Defendants’ summary judgment motion, overcome Defendants’ challenges to Plaintiff’s experts and damages models, then won at trial and in any post-trial appeals—all of which is difficult, expensive, and would likely have taken several more years. Defendants dispute liability and believe that the Classes are entitled to no recovery. But even if the jury found in favor of the Classes on liability, Defendants believe that Plaintiff would be able to prove no or only minimal damages. Among the key issues about which Plaintiff and Defendants disagree are: (i) whether Defendants misrepresented or concealed information in violation of the securities laws; (ii) the extent (if any) that the alleged misrepresentations and omissions influenced the trading prices of NantHealth common stock during the Class Period, and (iii) whether the alleged misrepresentations and omissions, even if proven, caused any harm to investors.

    There was no trial. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the Class Members will get compensation. The Class Representative and the attorneys think the Settlement is best for all Class Members.

  • To see if you will get money or other benefits from this Settlement, you first have to decide if you are a Class Member.

  • Judge Hatter decided that everyone who fits either of the following descriptions is a Class Member:

    All persons or entities who purchased or acquired NantHealth common stock in or traceable to NantHealth’s June 1, 2016 Initial Public Offering (IPO);

    All persons or entities who purchased any NantHealth common stock between June 1, 2016, and May 1, 2017.

  • Not included in the Classes are Defendants; the officers and directors of NantHealth; any entity in which Defendants have or had a controlling interest; members of Defendants’ immediate families and the legal representatives, heirs, successors or assigns of any such excluded party; any judge presiding over this matter, his or her spouse, and all persons within the third degree of relationship to either of them and the spouse of such persons; and any Class Member that files a timely and proper Request for Exclusion from the Classes.

    If one of your mutual funds owns shares of NantHealth stock, that alone does not make you a Class Member. You are a Class Member only if you purchased shares of NantHealth stock individually. Contact your broker to see if you have or held NantHealth stock.

  • If you are still not sure whether you are included, you can ask for free help.  You can call 1-844-975-1779 for more information. Or you can fill out and return the Claim Form described on page 5 of the notice, to see if you qualify.

    The notice summarizes the approved Settlement. For the precise terms and conditions of the Settlement, please see the settlement agreement (Stipulation of Settlement) available at the "Important Documents" page of this website, by contacting Class Counsel at, or by accessing the Court docket in this case, for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at

  • In exchange for the Settlement and dismissal of the Action, Defendants have agreed to pay $16,500,000, or $0.97 average per allegedly damaged share, to be distributed, less Court-approved fees and expenses, to all Class Members who send in a valid claim form and are entitled to a distribution from the Settlement fund (Authorized Claimants).

  • If you are an Authorized Claimant entitled to a payment, your share of the fund will depend on the number of valid claim forms that Class Members send in, how many shares of NantHealth stock you bought, and when you bought and sold those shares.

    You can calculate what is called your Net Recognized Loss by following the instructions in the Plan of Allocation on pages 10-14 of the notice, which shows how the Settlement, less Court-approved fees and expenses (which equals the Net Settlement Fund), will be distributed. It is unlikely that you will get a payment for all of your Net Recognized Loss. After all Class Members have sent in their Proof of Claim forms, the payment you get will be a part of the Net Settlement Fund equal to your Recognized Claim divided by the total of everyone’s Recognized Claims, with certain adjustments made for different types of claims. All of the $11.725 million available will be distributed. See the Plan of Allocation on pages 10-14 of the notice for more information.

    If every eligible Class Member sends in a valid claim form, the average payment will be $0.69 per share. The number of claimants who send in claims varies widely from case to case.  If less than 100% of Class Members send in a claim form, you could get more money.

  • To collect payment from the Settlement, you must have sent in a Claim Form or have submitted it online by May 22, 2020. You can get a Claim Form on the "Important Documents" page of this website, or by calling 1-844-975-1779. Follow all of the instructions on the Claim Form.

    The Claim Form must be completed by the actual beneficial purchaser(s) or acquirer(s) of the NantHealth common stock upon which this claim is based, or by their legal representative(s). Each separate legal entity must complete its own Claim Form, and all joint purchasers (e.g., executors, administrators, guardians, conservators and trustees) must sign it. The beneficial owner’s Social Security (or taxpayer identification) number and telephone number may be used in verifying the claim.

    You can submit your claim electronically on the "File A Claim" page of this website or by mail to the address listed on the Claim Form. Please keep a copy of your completed Claim Form and all documentation you submit for your own records.

  • The Hon. Terry J. Hatter, U.S. District Court Judge, held a Fairness Hearing on June 15, 2020. The Settlement ws approved. There may be appeals afterwards. It is always uncertain whether any appeals will be filed, and, if so, whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. Please be patient.

  • Unless you exclude yourself, you are staying in the Classes, and that means that you can’t sue, continue to sue, or be part of any other lawsuit against NantHealth or the other entities and individuals released by the Settlement (listed in Section I.AA of the Stipulation of Settlement, which you can find on the "Important Documents" page of this website) about the legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you. If you sign the Claim Form and receive payment, you will agree to a “Release of Claims,” described on the Claim Form, which describes exactly the legal claims that you give up if you get settlement benefits.

    The Released Claims, which you will be giving up if you stay in the Classes, are defined as follows:

    All claims, rights, demands, obligations, damages, actions or causes of action, or liabilities whatsoever, of every nature and description, whether known or unknown (including Unknown Claims defined further in the following FAQ's), whether arising under federal, state, common or foreign law or regulation, whether class or individual in nature, whether fixed or contingent, accrued or unaccrued, liquidated or unliquidated, at law or in equity, matured or unmatured, whether concealed or hidden, suspected or unsuspected, which now exist or heretofore have existed, (i) that were, could have been, or could in the future be asserted in any complaint based on the facts alleged in the operative complaint in this Action, or (ii) that arise out of, are based on, or relate in any way to the acts, facts, statements, or omissions alleged in the operative complaint in this Action, and that were, could have been, or could in the future be asserted in any forum, case, or action, including, without limitation, all claims that arise out of, are based on, or relate in any way to the purchase, other acquisition, holding, sale, or other disposition of NantHealth, Inc. securities by the Classes or Class Members.

    If you have any questions about the scope of the legal claims you give up by staying in the Classes, you may view Section I.BB of the Stipulation of Settlement (available on the "Important Documents" page of this website) or you contact the lawyers representing the Classes:


    David Stein
    505 14th Street, Suite 1110, Oakland,
    California 94612
    Telephone: (510) 350-9700
    Facsimile: (510) 350-9701

    John Kehoe
    Two Penn Center Plaza
    1500 JFK Boulevard, Suite 1020
    Philadelphia, PA 19102
    Telephone: (215) 792-6676

  • If you don’t want a payment from this Settlement, but you want to keep the right to sue or continue to sue NantHealth and the other Defendants, on your own, about the legal issues in this case, then you must take steps to get out of the Settlement.  This is called excluding yourself—or is sometimes referred to as opting out of the settlement class.

  • To exclude yourself from the Settlement, you must send a letter by mail saying that you want to be excluded from Deora v. NantHealth, Inc., No. 2:17-cv-01825-TJH-MRW. Be sure to include your name, address, telephone number, the date(s), price(s), and number(s) of shares of NantHealth common stock you purchased or acquired, a statement that you desire to be excluded from the Settlement and the Classes, and your signature. You must have mailed your exclusion request no later than May 22, 2020 to:

    NantHealth, Inc., Securities Litigation
    c/o JND Legal Administration
    P.O. Box 91125
    Seattle, WA 98111

    You can’t exclude yourself on the phone or by e-mail.  If you ask to be excluded, you will not get any settlement payment, and you cannot object to the Settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue (or continue to sue) NantHealth or the other Defendants in the future.

  • No. Unless you exclude yourself, you give up the right to sue NantHealth or the other entities and individuals released by the Settlement for the claims that this Settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from the Classes in this case to continue your own lawsuit. Remember, the exclusion deadline was May 22, 2020.

  • No. If you exclude yourself, do not send in a Claim Form to ask for any reimbursement. But, you may sue, continue to sue, or be part of a different lawsuit against NantHealth.

  • The Court asked Eric H. Gibbs and David Stein of the law firm Gibbs Law Group LLP and John A. Kehoe of the Kehoe Law Firm PC to represent you and other Class Members. Together, the lawyers are called Class Counsel. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

  • Class Counsel have prosecuted this case on a contingency basis for over two years. That means Class Counsel have not been compensated for litigating this case on behalf of the Classes and have advanced all litigation expenses.

    Class Counsel will ask the Court for attorneys’ fees of up to 25% of the Settlement Fund ($4,125,000); reimbursement of the approximately $375,000 in litigation expenses they have advanced on behalf of the Classes; and a payment of up to $25,000 for the Class Representative, plus interest on those fees and expenses at the same rate as earned by the Settlement Fund. The Court may award less than these amounts. These amounts, and the costs to administer the Settlement, will be paid out of the $16.5 million fund that Defendants agreed to pay in order to settle this Action (with the approved fees and cost reimbursements together equal to about $0.28 per share).

  • You can tell the Court that you don’t agree with the Settlement or some part of it.

  • If you are a Class Member, you can object to the Settlement if you don’t like any part of it. You can give reasons why you think the Court should not approve it. The Court will consider your views.  

    To object, you must have submitted a letter no later than May 22, 2020 to the addresses below. Your letter must include the following: (i) a statement that you are objecting to the settlement in this lawsuit, Deora v. NantHealth, Inc., No. 2:17-cv-01825-TJH-MRW; (ii) your full name, current address, and current telephone number; (iii) the date(s), price(s), and number(s) of all shares of NantHealth, Inc., common stock you purchased or acquired; (iv) a statement of your objection, including all supporting factual and legal grounds for the position and copies of documents you wish to submit in support of your objection; (v) a statement of whether your objection applies only to you, to a subset of the Classes, or to one or both Classes in their entirety; and (vi) your signature and the date of the objection. 

    If you intend to appear, in person or by counsel, at the final approval hearing, you must so state in your objection. Any failure to do so, or otherwise comply with the requirements listed, may be treated as a waiver of your objections to the Settlement and can lead to you being barred from speaking or otherwise presenting any views at the final approval hearing.

    Lawyers asserting objections on behalf of Class Members must have: (a) filed a notice of appearance with the Court by May 22, 2020; (b) filed a sworn declaration attesting to his or her representation of each Class Member on whose behalf the objection is being filed or file (in camera) a copy of the contract between that lawyer and each such Class Member; and (c) complied with the procedures described in the notice.

    You must have sent your objection and any supporting documentation no later than May 22, 2020 to the Court, Class Counsel, and Defense Counsel at the following addresses:


    Clerk of Court
    Clerk of Court
    United States District Court for
    the Central District of California
    Western Division
    350 W. 1st Street
    Los Angeles, CA 90012

    Class Counsel
    David Stein
    Gibbs Law Group LLP
    505 14th Street, Suite 1110,
    Oakland, California 94612

    Defense Counsel
    Boris Feldman.
    Wilson Sonsini Goodrich &
    Rosati, PC
    650 Page Mill Road
    Palo Alto, California 94304

  • Objecting is simply telling the Court that you don’t like something about the Settlement. You can object only if you stay in the Classes. Excluding yourself is telling the Court that you do not want to be part of the Classes and the Settlement. If you exclude yourself, you have no basis to object because the case no longer affects you.

  • The Court held a hearing to decide whether to approve the Settlement. You may attend and you may ask to speak, subject to the requirements in the "How do I tell the Court that I like or dislike the Settlement?" FAQ, but you don’t have to.

  • The Court held the Fairness Hearing on June 15, 2020.  At the hearing the Court approved the Settlement.

  • No. Class Counsel will answer any questions Judge Hatter may have. But, you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time and complied with the specifications mentioned in the "How do I tell the Court that I like or dislike the Settlement?" FAQ, the Court will consider it. You may also pay your own lawyer to attend, but it’s not necessary.

  • You may ask the Court’s permission to speak at the Fairness Hearing, as discussed in the "How do I tell the Court that I like or dislike the Settlement?" FAQ. To do so, you must follow the specifications in the "How do I tell the Court that I like or dislike the Settlement?" FAQ, including by stating in your objection that you intend to appear, either in person or by counsel. You cannot speak at the hearing if you excluded yourself.

  • If you do nothing, you’ll get no money from this Settlement. But, unless you exclude yourself, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against NantHealth about the legal issues in this case, ever again.

  • The notice summarizes the approved Settlement. More details are in the Stipulation of Settlement, which you can view from the "Important Documents" page of this website. You can also get a copy of the Stipulation of Settlement by writing to David Stein, Gibbs Law Group LLP, 505 14th Street, Suite 1110, Oakland, CA 94612.

  • You can call 1-844-975-1779 toll free or visit the "Important Documents" page of this website to view or download a copy of the notice, a claim form, plus other information to help you determine whether you are a Class Member and whether you are eligible for a payment.


For More Information

Visit this website often to get the most up-to-date information.


NantHealth, Inc., Securities Litigation
c/o JND Legal Administration
P.O. Box 91125
Seattle, WA 98111