Investigations
Dentsply Sirona Inc.
Overview
Overview
- Deadline:
- Jan 27, 2025
| Company Name: | Company Name: Dentsply Sirona Inc. |
| Stock Symbol: | Stock Symbol: XRAY |
Dentsply Sirona Inc. (NASDAQ: XRAY): Dentsply Sirona Inc. (“Dentsply” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. 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.
If you incurred losses on your investments in Dentsply, you are encouraged to submit your information.
Why was Dentsply Sued for Securities Fraud?
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.
As alleged, these statements were materially false and misleading. 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.
The Stock Declines as the Truth is Revealed
On October 24, 2024, 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 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.
What are my Rights?
If you purchased or otherwise acquired Dentsply stock, you may ask the Court no later than January 27, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Dentsply, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA 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.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Dentsply, you are encouraged to submit your information.
Why was Dentsply Sued for Securities Fraud?
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.
As alleged, these statements were materially false and misleading. 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.
The Stock Declines as the Truth is Revealed
On October 24, 2024, 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 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.
What are my Rights?
If you purchased or otherwise acquired Dentsply stock, you may ask the Court no later than January 27, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Dentsply, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA 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.
Attorney advertising. Past results do not guarantee future outcomes.