Investigations
TransMedics Group, Inc.
Overview
Overview
- Deadline:
- Apr 15, 2025
| Company Name: | Company Name: TransMedics Group, Inc. |
| Stock Symbol: | Stock Symbol: TMDX |
TransMedics Group, Inc. (NASDAQ: TMDX): TransMedics Group, Inc. (“TransMedics” 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 TransMedics securities. The case is pending in the U.S. District Court for the District of Massachusetts and is captioned Jewik v. TransMedics Group, Inc., et al., No. 25-cv-10385.
If you incurred losses on your investments in TransMedics, you are encouraged to submit your information.
Why was TransMedics Sued for Securities Fraud?
TransMedics is a commercial-stage medical technology company. The Company’s “Organ Care System” (“OCS”) is a medical device that keeps donor organs viable before transplant by replicating many aspects of the organ’s natural living and functioning environment outside of the human body.
The complaint alleges that TransMedics misrepresented that its business was driven by kickbacks, fraudulent overbilling, and coercive tactics. The complaint further alleges that the company misrepresented that it engaged in unsafe practices involving OCS, hid safety issues, and generally lacked safety oversight.
Bleichmar Fonti & Auld LLP is also investigating whether TransMedics misled investors about the true drivers of its revenue growth which the Company attributed to legitimate business factors, such as the diversification of its business, and its strong competitive position given the technological superiority of the OCS.
The Stock Declines as the Truth is Revealed
On February 21, 2024, U.S. Representative and member of the House Committee on Oversight and Accountability Paul Gosar issued a letter accusing the Company of misconduct including overcharging for OCS and misappropriating corporate resources. This news allegedly caused the price of TransMedics stock to decline approximately 4% over two trading days, from $86.99 per share on February 21, 2024 to $83.14 per share on February 23, 2024.
Then, 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.
Next, 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.
Finally, on January 10, 2025, Scorpion Capital issued a research report explaining that the Company’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 purchased or otherwise acquired TransMedics securities, you may ask the Court no later than April 15, 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 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.
Attorney advertising. Past results do not guarantee future outcomes
If you incurred losses on your investments in TransMedics, you are encouraged to submit your information.
Why was TransMedics Sued for Securities Fraud?
TransMedics is a commercial-stage medical technology company. The Company’s “Organ Care System” (“OCS”) is a medical device that keeps donor organs viable before transplant by replicating many aspects of the organ’s natural living and functioning environment outside of the human body.
The complaint alleges that TransMedics misrepresented that its business was driven by kickbacks, fraudulent overbilling, and coercive tactics. The complaint further alleges that the company misrepresented that it engaged in unsafe practices involving OCS, hid safety issues, and generally lacked safety oversight.
Bleichmar Fonti & Auld LLP is also investigating whether TransMedics misled investors about the true drivers of its revenue growth which the Company attributed to legitimate business factors, such as the diversification of its business, and its strong competitive position given the technological superiority of the OCS.
The Stock Declines as the Truth is Revealed
On February 21, 2024, U.S. Representative and member of the House Committee on Oversight and Accountability Paul Gosar issued a letter accusing the Company of misconduct including overcharging for OCS and misappropriating corporate resources. This news allegedly caused the price of TransMedics stock to decline approximately 4% over two trading days, from $86.99 per share on February 21, 2024 to $83.14 per share on February 23, 2024.
Then, 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.
Next, 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.
Finally, on January 10, 2025, Scorpion Capital issued a research report explaining that the Company’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 purchased or otherwise acquired TransMedics securities, you may ask the Court no later than April 15, 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 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.
Attorney advertising. Past results do not guarantee future outcomes