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NEW YORK, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Dentsply Sirona Inc. (NASDAQ: XRAY) and certain of the company’s senior executives for potential violations of the federal securities laws.
If you invested in Dentsply, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/dentsply-sirona-inc.
Investors have until January 27, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Dentsply stock. The case is pending in the U.S. District Court for the Southern District of New York and is captioned North Collier Fire Control and Rescue District Firefighters’ Retirement Plan v. Dentsply Sirona Inc., et al., No. 24-cv-09083.
What is the Lawsuit About?
Dentsply manufactures professional dental products. On December 31, 2020, Dentsply paid $1.04 billion to acquire Byte, a manufacturer of affordable, “doctor-directed,” clear dental aligners. The complaint alleges that, during the relevant period, Dentsply touted the growth in Byte’s business as well as Dentsply’s ability to profitably generate revenue by converting members of Byte’s “target demographics” into new patients.
In truth, the complaint alleges that Dentsply targeted low-income people with underlying dental issues that were ineligible for treatment and Dentsply sold Byte aligners to contraindicated patients. The complaint further alleges that Dentsply knew that its Byte aligners were causing severe patient injuries but did little to investigate and had no systems in place to notify the FDA, contrary to regulation. As a result, Dentsply materially overstated the goodwill value of Byte.
On October 24, 2024, Dentsply announced the “voluntary suspension of sales and marketing of its Byte Aligners and Impression Kits while the company conducted a review of certain regulatory requirements related to these products.” Dentsply also disclosed that it “expects to record non-cash charges for the impairment of goodwill within the range of $450-$550 million” for its Orthodontic and Implant Solutions segment, with the decline in fair value for the Orthodontic Aligner Solutions reporting unit “driven primarily by adverse impacts from recent state regulatory trends pertaining to the Company’s direct-to-consumer aligner business.” During a “Byte business update call” CEO Campion gave more context about the Byte suspension: “[I]n connection with our ongoing discussions with FDA, we have determined that our patient onboarding workflow may not provide adequate assurance that certain contraindicated patients do not enter treatment with Byte Aligners.”
As a result of this news, the price of Dentsply stock fell more than 4%, from a closing price of $24.41 per share on October 24, 2024 to a closing price of $23.31 per share on October 25, 2024.
Then, on November 7, 2024, Dentsply reported its financial results for the third quarter of 2024 during which it disclosed it had “recorded a non-cash charge for the impairment of goodwill of ($495) million net of tax within the Orthodontic and Implant Solutions segment.” Dentsply also revised its 2024 outlook, with expected organic sales of “(3.5%) to (2.5%) (previously (1%) to flat)” and adjusted EPS of “$1.82 to $1.86 (previously $1.96 to $2.02).” CEO Campion disclosed that although Dentsply was “not at a point in our analysis to make a definitive decision concerning Byte,” the company was “thoroughly evaluating strategic options, which may include a discontinuation of some or all of this business.”
This news caused the price of Dentsply stock to fall $6.72 per share, or more than 28%, from a closing price of $23.98 per share on November 6, 2024, to a closing price of $17.26 per share on November 7, 2024.
Click here for more information: https://www.bfalaw.com/cases-investigations/dentsply-sirona-inc.
What Can You Do?
If you invested in Dentsply you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/dentsply-sirona-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/dentsply-sirona-inc
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