TransMedics Group, Inc. (NASDAQ: TMDX): TransMedics is being investigated for violations of the federal securities laws in connection with potential false and misleading statements made to investors and subsequent significant price declines in the stock.
 
If you incurred losses on your investments in TransMedics, you are encouraged to submit your information.
 
Why is TransMedics being Investigated?
 
TransMedics is a medical technology company that develops systems to preserve and assess organs for transplantation. It claimed that its significant revenue growth was due to legitimate business factors, such as the diversification of its business. TransMedics also discussed how competition benefitted the company and that it was significantly outpacing any competition given the technological superiority of the company’s systems.
 
In truth, it appears that TransMedics fueled its growth by engaging in an anti-competitive scheme, including providing kickbacks to medical providers. The company further boosted growth by engaging in billing fraud and promoting off-label use.
 
The Stock Declines as the Truth is Revealed
 
On October 28, 2024, the company reported that its revenue growth for 3Q 24 was roughly half that reported in 2Q 24. Still, TransMedics assured investors that the disappointing growth was not caused by a change in competitive dynamics or market share loss. Despite this assurance, the news caused the price of TransMedics stock to drop almost 30%, from $126.24 per share on October 28, 2024 to $88.50 per share on October 29, 2024.
 
On December 2, 2024, TransMedics announced the resignation of its CFO from that role and narrowed its financial outlook for 2024. On this news, the price of the company’s stock declined 16%, from $85.14 per share on December 2, 2024 to $71.44 per share on December 3, 2024.
 
Then, on January 10, 2025, Scorpion Capital issued a research report explaining that TransMedics’s growth was fueled by an anti-competitive scheme that included kickbacks to medical providers to use the company’s products. What’s more, Scorpion Capital wrote how TransMedics further boosted growth by operating an organ trafficking scheme—shopping and steering rejected organs to top users as a quid pro quo for accepting them on its devices—as well as engaging in widespread billing fraud and promoting off-label use. Scorpion Capital’s report was based on an in-depth, six-month investigation that included over 30 interviews with former company employees, surgeons, leading transplant centers, and its largest customers, among others. The publication of the Scorpion Capital report caused the price of TransMedics stock to decline an additional 5%, from $72.55 per share on January 8, 2025 to $68.81 per share on January 10, 2025.
 
What are my Rights?
 
If you incurred losses on your investments in TransMedics, 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, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
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