aibioNatera appeals Guardant false advertising judgment after $292.5 million verdict
Tickers NTRA
A jury found Natera liable in November 2024 in the Northern District of California. Final judgment came in June 2026 and Natera is appealing to the Ninth Circuit.
Key facts
- Company
- Natera, Inc. (NASDAQ: NTRA)
- News type
- Legal
- Primary source
- Natera 10-Q for the quarter ended June 30, 2026 (SEC EDGAR)
Natera, Inc. (Nasdaq: NTRA) said in its 10-Q filed August 7, 2026 that a federal court entered final judgment in June 2026 in the false advertising case Guardant Health, Inc. brought against it in the U.S. District Court for the Northern District of California. Natera is appealing to the Ninth Circuit. Guardant filed the case in May 2021. After a trial, a jury found Natera liable in November 2024 and found damages of $292.5 million. The 10-Q gives no case number.
The defendant is Natera, Inc. The 10-Q names no individual defendants in this case. Natera also asserted counterclaims against Guardant, which makes Guardant a counter-defendant.
The case
Guardant alleged false advertising and related claims and sought unspecified damages and injunctive relief. Also in May 2021, Natera sued Guardant in the Western District of Texas, alleging false advertising and related claims. Natera later voluntarily dismissed the Texas suit and asserted those claims as counterclaims in the California action, again seeking unspecified damages and injunctive relief.
In August 2021, Guardant moved to dismiss Natera's counterclaims. The court denied the motion in all material respects. Both parties later filed cross-motions for summary judgment, which the court granted in part and denied in part.
Defendants
Natera, Inc. is the only defendant the 10-Q identifies in the false advertising case. Guardant separately sued Natera and two of its former employees in the Northern District of California in February 2025, alleging trade secret misappropriation, breach of contract and related tort claims. The 10-Q does not name the employees. Guardant voluntarily dismissed those claims without prejudice in April 2025. The 10-Q says Natera has been involved in two lawsuits against Guardant.
Where it stands
The jury's November 2024 verdict found Natera liable for false advertising. In July 2025, the court entered a final order on the parties' post-trial motions that largely upheld the verdict. The court entered final judgment in June 2026, and Natera is appealing to the Ninth Circuit. The 10-Q gives no briefing schedule or hearing date.
Why it matters to shareholders
The 10-Q says the aggregate accrual for legal contingencies that are probable and reasonably estimable was approximately $33.2 million at June 30, 2026, compared with $32.6 million at December 31, 2025. It does not say how much, if any, of that relates to the Guardant judgment. Natera says it cannot reasonably estimate a loss above the amounts accrued. It also cautions that "damage amounts claimed in litigation or other matters may be unsupported, exaggerated or unrelated to possible outcomes."
Related matters
Natera discloses several other cases in the same note. Ravgen, Inc. sued it in June 2020 in the Western District of Texas over two patents. A jury returned a verdict of non-willful infringement in January 2024 and found damages of $57.0 million. The court entered judgment in March 2026, and Natera has appealed certain rulings.
In CareDx, Inc.'s separate false advertising case, a March 2022 jury found Natera liable, with damages of $44.9 million. In July 2023 the court ruled CareDx is not entitled to any damages. The Third Circuit affirmed, and the Supreme Court denied CareDx's petition in June 2026.
A purported securities class action filed in April 2022 in the Western District of Texas names Natera and "certain of its management" under Sections 10(b) and 20(a). The court has certified the class. Shareholder derivative complaints followed in October 2023 in that court and in January 2024 in the District of Delaware. The 10-Q does not name the management defendants or give a class period.
Patient class actions are also pending. A consolidated Panorama marketing suit in the Northern District of California has reached a settlement of all claims, submitted for final approval, with class notices sent in January 2026. A separate October 2024 patient suit over Natera's preimplantation genetic test was dismissed without prejudice in August 2025. The plaintiffs filed an amended complaint that month, and an almost identical complaint was filed in June 2026, which Natera expects to be consolidated.