Class Action Lawsuit Filed Against DENTSPLY SIRONA Inc. Over Shareholder Losses

DENTSPLY SIRONA Inc. Under Fire with Class Action Lawsuit

Recently, the Pomerantz Law Firm has announced the filing of a class action lawsuit against DENTSPLY SIRONA Inc. (NASDAQ: XRAY), drawing attention to significant losses incurred by shareholders. Investors who have experienced financial setbacks are encouraged to reach out to Danielle Peyton at the firm for further information.

The lawsuit specifically addresses concerns regarding potential securities fraud and unlawful practices allegedly engaged in by DENTSPLY and its leadership. Shareholders who acquired DENTSPLY securities during the designated Class Period have until January 27, 2025, to express their interest in serving as a Lead Plaintiff in this case.

Background of Allegations

DENTSPLY SIRONA is a well-known player in the dental market, having made headlines with its acquisition of Byte, a manufacturer renowned for clear dental aligners. This transaction, which took place at the end of 2020 for a staggering $1.04 billion, aimed to bolster DENTSPLY’s market position significantly.

However, the situation began to unravel when on October 24, 2024, the company disclosed a voluntary pause on the sales and marketing of its Byte Aligners and Impression Kits. This decision came as the company aimed to review regulatory compliance concerning these products. This announcement was seen as a precaution and was followed by DENTSPLY's revelation of anticipated non-cash charges relating to goodwill impairment estimated between $450 million to $550 million within its Orthodontic and Implant Solutions division.

The announcement led to a sharp decline in DENTSPLY’s stock price, which fell by over 4%, marking a troubling trend for investors. Subsequently, when the third-quarter financial report was released on November 7, 2024, more bad news followed: the company revealed a non-cash charge of $495 million, citing poor performance and a grim outlook affecting its sales forecasts. It disclosed an anticipated decrease in organic sales by a range of 2.5% to 3.5%, reflecting a significant revision from previous expectations.

Market Reactions

The implications of these developments were reflected in the stock market as well; DENTSPLY's stock price plummeted by over 28% following the disclosure of its financial results, a clear signal of the market's unease regarding the company's current trajectory.

DENTSPLY's leadership even hinted at the possibility of discontinuing Byte's product line altogether, creating further anxiety among investors and stakeholders. The ramifications of these decisions not only affected DENTSPLY’s financial standing but also raised substantial concerns about corporate governance and the accountability of executive management to shareholders.

What’s Next for Shareholders?

For investors who feel impacted by these developments, the Pomerantz Law Firm is actively seeking individuals who wish to join the class action lawsuit. By participating, they may recover losses from investments made in DENTSPLY during this tumultuous period. To take action, potential plaintiffs are encouraged to provide their contact details and investment specifics directly to the firm.

Pomerantz LLP, founded by Abraham L. Pomerantz, holds a prestigious reputation as a leader in corporate, securities, and antitrust class litigation. With a strong track record of recovering significant damages for investors, the firm emphasizes the importance of protecting shareholder rights in the face of corporate misconduct.

If you have been negatively impacted by your investment in DENTSPLY SIRONA Inc., it is imperative to act quickly and engage with the Pomerantz firm to explore your options.