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Shareholder Class Action Filed Against Natus Medical Incorporated

Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Natus Medical Incorporated (“Natus Medical”) (Nasdaq: BABY) securities between October 16, 2015 and April 3, 2016, both dates inclusive (the "Class Period").

Natus Medical investors may receive additional information about the case by clicking the link "Join this Class Action" above.

According to the complaint, Natus Medical designs, manufactures and markets newborn care and neurology healthcare products and services worldwide. On October 16, 2015, Natus Medical announced that its Argentinian subsidiary had entered into a three-year supply contract with the Ministry of Health of Venezuela (the “Ministry of Health”) pursuant to which the company would receive $232.5 million, including $69 million in prepayments “expected” during the first quarter of 2016, ending March 31, 2016 (the “Supply Contract”).

The complaint alleges that the Supply Contract was not as the defendants had publicly portrayed it.  Specifically, the complaint alleges that the defendants did not disclose: (i) that the Venezuelan government had failed to make tens of millions of dollars in prepayments to Natus Medical, which were required to have been paid beginning in October 2015; (ii) that Natus Medical had no means to effectively enforce its rights under the Supply Contract, as Venezuela was the exclusive forum for dispute resolution; (iii) that Natus Medical’s receipt of revenues pursuant to the Supply Contract was contingent on the outcome of Venezuelan elections; (iv) that the Supply Contract was subject to foreign currency exchange risks; (v) that the Supply Contract did not have the economic benefits or certitude that defendants had represented; and (vi) that as a result of the foregoing, Natus Medical was not on track to achieve the increased guidance provided by defendants and such guidance lacked a reasonable basis.

Further, the complaint alleges that as a result of the defendants’ false and misleading statements, Natus Medical stock traded at artificially inflated prices during the Class Period, and that certain of the company’ssenior executives immediately cashed in, including the two individual defendants, James B. Hawkings and Jonathan A. Kennedy, who alone collectively sold more than $10.7 million worth of Natus Medical stock. 

According to the complaint, on January 11, 2016, Natus Medical issued a press release announcing a purported “delay” in the payments from the Ministry of Health.  Following this news, the price of Natus Medical common stock declined, falling from its close of $43.20 per share on January 8, 2016 to close at $38.25 per share on January 11, 2016, a decline of almost $5 per share, or 11%. On April 4, 2016, Natus Medical issued a press release pre-announcing its preliminary first quarter 2016 results. The release disclosed that “[r]evenue for the first quarter of 2016 [was] expected to be approximately $87.5 million versus previous guidance of $91.5 million to $92.5 million, excluding revenue from the Venezuela Ministry of Health contract.”  Following this news, the price of Natus Medical stock declined, falling from its close of $39.64 per share on April 1, 2016 to close at $31.84 per share on April 4, 2016, a decline of $7.80 per share, or nearly 20%.

If you are a member of the class described above, you may no later than March 31, 2017 move the Court to serve as lead plaintiff of the class, if you so choose. 

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will will adequatley represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.

Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com.

CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087 1-888-299-7704 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com

Please complete this form and list your purchase and sale transaction(s) for Natus Medical Incorporated (“Natus Medical”) (Nasdaq: BABY) securities between October 16, 2015 and April 3, 2016, both dates inclusive (the "Class Period"):

Information Sheet
* Denotes required field
Acquisitions
Date Aquired
Number of Shares Acquired
Acquisition Price Per Share
Sales
Date Sold
Number of Shares Sold
Selling Price Per Share
Did you purchase shares of Natus Medical Incorporated prior to the class period?
Are you a current or former employee of Natus Medical Incorporated?
The submission of this form does not create an attorney-client relationship, nor an obligation on the part of Kessler Topaz or you to file a lead plaintiff motion in this matter. Any information you submit will be maintained as confidential. If Kessler Topaz, in its sole discretion, believes that you might be an appropriate lead plaintiff candidate, Kessler Topaz will contact you to discuss the matter and whether to establish an attorney client relationship. By signing this form you are authorizing us to contact you regarding this case and/or future cases.
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