If you suffered losses exceeding $75,000 in Dentsply between February 28, 2022 and November 6 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Dec. 20, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DENTSPLY SIRONA Inc. (“Dentsply” or the “Company”) (NASDAQ: XRAY) and reminds investors of the January 27, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose 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.
The truth began to be revealed after markets closed on October 24, 2024, when 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.” Dentsply claimed that the Byte sales and marketing suspension was a “precautionary measure.” Dentsply further 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. During a “Byte business update call” before markets opened on October 25, 2024, Chief Executive Officer (“CEO”) Simon D. 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.”
On this news, the price of Dentsply stock fell over 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.
The truth was revealed on November 7, 2024 when, before the markets opened, Dentsply reported its financial results for the third quarter of 2024, disclosing that Dentsply had “recorded a non-cash charge for the impairment of goodwill of ($495) million net of tax within the Orthodontic and Implant Solutions segment.” During the corresponding earnings call held later that day, CEO Campion further 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.”
On this news, the price of Dentsply stock fell over 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, on extraordinary trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Dentsply’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the DENTSPLY SIRONA class action, go to www.faruqilaw.com/XRAY or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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