SAN DIEGO, Nov. 27, 2024/PRNewswire/ -- Robbins LLP informs investors that a class action was filed on behalf of persons and entities that purchased Dentsply Sirona Inc. (NASDAQ: XRAY) common stock between December 1, 2022 and November 6, 2024. Dentsply manufactures professional dental products, for example, CAD/CAM computer-aided design and manufacturing systems, imaging equipment, motorized dental handpieces, consumables (e.g., files, sealers, needles), implants, prosthetics, and orthodontics, such as clear aligners.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
The Allegations:Robbins LLP is Investigating Allegations that Dentsply Sirona Inc. (XRAY) Misled Investors Regarding its Byte Business
According to the complaint, during the class period, defendants failed to disclose: (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 was revealed on November 7, 2024, when Dentsply reported its financial results for the third quarter of 2024, ended September 30, 2024. The related press release disclosed 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." The press release further detailed how the decline in fair value was purportedly driven by "sustained macroeconomic pressures, legislative trends impacting Byte, weakened demand and competitive pressures in implants, and lower expected volumes of lab materials."
On this news, the price of Dentsply stock fell $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 Now: You may be eligible to participate in the class action against Dentsply Sirona Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by January 27, 2025. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.
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SOURCE Robbins LLP
