NEW YORK, Dec. 18, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors of the January 27, 2025, deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of investors who acquired Dentsply Sirona Inc. (“Dentsply” or the “Company”) (NASDAQ:XRAY) securities during the period from November 1, 2022, to November 6, 2024 (“the Class Period”).
[LEARN MORE ABOUT THE CLASS ACTION]
Prior to the start of the Class Period, on December 21, 2020, Dentsply paid $1.04 billion in cash to acquire Byte, a manufacturer of affordable, “doctor-directed,” direct-to-consumer (“DTC”) clear dental aligners.
On October 24, 2024, after markets closed, Dentsply announced the “voluntary suspension of sales and marketing of its Byte Aligners and Impression Kits while the Company conducts a review of certain regulatory requirements related to these products.” In a current report filed with the SEC on Form 8-K after markets closed, Dentsply claimed that the Byte sales and marketing suspension was a precautionary measure. Dentsply further disclosed in the same current report 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 being driven “primarily by adverse impacts from recent state regulatory trends” pertaining to the Company’s DTC aligner business. Then, on October 25, 2024, during a “Byte business update call” before markets opened, CEO Simon Campion gave more context about the Byte suspension: “In connection with our ongoing discussions with FDA, we will have determined that our patient onboarding workflow may not provide adequate reassurance that certain contraindicated patients do not enter treatment with Byte Aligners.” As a result of this news, the price of Dentsply shares declined by $1.10 per share, from $24.41 per share on October 24, 2024, to close at $23.31 on October 25, 2024.
On November 7, 2024, Dentsply disclosed in a press release that it had “recorded a non-cash charge for the impairment of goodwill of ($495) million net of tax within the Orthodontic and Implant Solution segment.” Later that day, Campion explained that although Dentsply was “not at a point in our analysis to make a definitive decision concerning Byte,” the Company was “thoroughly evaluating strategies options, which may include a discontinuation of some or all of this business.” Campion further added “I just keep in mind the Byte business is having a large impact on our fourth quarter forecast”. On this news, the price of Dentsply shares declined by $6.72 per share, or approximately 28%, from $23.98 per share on November 6, 2024, to close at $17.26 per share on November 7, 2024.
The complaint alleges that defendants, throughout the Class Period, made materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects, including that: (1) Dentsply targeted low-income people who did not have access to good oral hygiene education, a dentist, or dental insurance, which often meant patients signing up for Byte had underlying dental issues that would have made them ineligible for treatment; (2) the push for Byte growth and sales commissions caused sales employees to sell to contraindicated patients; (3) as a result of the above, the Byte patient onboarding workflow did not provide adequate assurance that contraindicated patients did not enter treatment; (4) before and during the Class Period, reports of Byte patient injuries were pouring in; (5) Dentsply knew that its Byte aligners were causing severe patient injuries for years but did little to investigate those injuries or notify the FDA; (6) Dentsply had no systems in place to notify the FDA of these injuries, which the Company is required to do within 30 days of learning of a problem; (7) the FDA had received a sharp uptick in reports of serious injuries from Byte patients; (8) as a result of the above, Dentsply materially overstated the goodwill value of Byte; (9) as a result of the above, Defendants positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Dentsply securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
