Organogenesis investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than February 8, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Organogenesis Holdings Inc. (“Organogenesis”) (NASDAQ: ORGO) securities between March 17, 2021 and October 11, 2021, both dates inclusive (the “Class Period”).
Organogenesis is a regenerative medicine company that develops, manufactures, and commercializes solutions for the advanced wound care and surgical and sports medicine markets in the U.S. Organogenesis’ products include, among others, “Affinity” and “PuraPly XT”. Affinity is a wound covering product used to support the treatment of a variety of wound sizes and types. PuraPly XT is an antimicrobial barrier used for a broad variety of wound types.
The Class Period commences on March 17, 2021. On March 16, 2021, during post-market hours, Organogenesis issued a press release announcing its fourth quarter and fiscal year 2020 financial results. Throughout the Class Period, the defendants touted Organogenesis’ revenue and profits derived from its Affinity and PuraPly XT products.
The truth emerged on October 12, 2021, when an anonymous report, the VIC Report, addressing Organogenesis was published on Value Investors Club, an online website where investors share investment ideas. The report alleged, among other issues, that Organogenesis has been improperly billing the federal government for $250 million annually. The report also alleged that Organogenesis had set the price for its new wound covering, Affinity, “exorbitantly high[,]” which Medicare reimbursed, while making the product lucrative for doctors to use through large rebates, and that Organogenesis employed a similar tactic for its new PuraPly XT product. Moreover, according to the VIC Report, “Organogenesis gave doctors, often ethically questionable podiatrists that had been hurting from covid, rebates on Affinity[,]” and “[t]hese rebates could be upwards of 30% and the doctors pocket the spread between the reimbursed amount and what they paid Organogenesis.” The author of the report “estimate[d] a profit of $500-$2,000+ per application[,]” while noting that “[m]arketing the spread”— i.e., “convincing doctors to use a product based upon how much they make”—“is illegal[,]” and that “I have been told Organogenesis sales reps break these rules.”
Following this news, Organogenesis’ stock price fell $1.70 per share, or 14.11%, to close at $10.35 per share on October 12, 2021.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Organogenesis improperly billed the federal government for its Affinity and PuraPly XT products by, among other things, setting the price for those products multiple times higher than similar products; (2) Organogenesis improperly induced doctors to use its Affinity and PuraPly XT products through lucrative reimbursements; (3) as a result of all the foregoing, Organogenesis’ revenue and profits derived from its Affinity and PuraPly XT products were at least in substantial part unsustainable; and (4) as a result, Organogenesis’ public statements were materially false and misleading at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.