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Investors Alert: Class Action Lawsuit Against Organon & Co.

On June 9, 2025, Berger Montague PC issued a notice urging investors of Organon & Co. (NYSE: OGN) to take immediate action regarding a securities class action lawsuit. This lawsuit, initiated on behalf of purchasers of Organon securities between October 31, 2024, and April 30, 2025, alleges significant misrepresentation of the company's fiscal strategies and priorities following its acquisition of Dermavant.

Background of Organon & Co.

Organon is a healthcare company headquartered in Jersey City, New Jersey, specializing in women’s health. In a significant business development, the company announced its acquisition of Dermavant, a biopharmaceutical firm dedicated to dermatological conditions, for a hefty $1.2 billion in October 2024. This acquisition seemingly added a substantial burden of debt onto Organon's balance sheet.

Despite this increase in financial liability, Organon assured its investors that maintaining its dividend was its foremost priority. The company consistently communicated that dividends were central to its capital allocation strategy. However, as the lawsuit suggests, there was an alleged shift in focus to reducing debt, contradicting prior assurances.

Realization of Misrepresentation

The turning point occurred on May 1, 2025, when Organon announced a drastic reduction in its dividend payout from $0.28 per share to merely $0.02. Management indicated that it had recalibrated its capital allocation policies to prioritize debt reduction. This announcement understandably caused distress among investors and led to a plummet in the stock value by approximately 27%, falling from $12.93 to $9.45 per share in one day.

The announcement highlighted a significant shift in the company’s strategy, which undermined previous claims about maintaining investor dividends. Investors who acquired securities during the specified Class Period are now faced with the opportunity to hold Organon accountable through litigation.

Taking Action

The deadline for investors to seek participation as lead plaintiffs in the lawsuit is July 22, 2025. Those wishing to assert their rights and potentially lead the class must act before this date. This role involves directing the litigation on behalf of all affected shareholders, with the lead plaintiff typically being the investor or group with the most substantial financial stake in the outcome.

Berger Montague, a firm with extensive experience in securities litigation, is handling this matter and encourages any eligible investor to either appoint counsel or choose to remain an inactive class member. For more comprehensive information, investors are urged to communicate directly with Berger Montague's representatives, including Andrew Abramowitz and Peter Hamner.

Conclusion

As the lawsuit unfolds, the implications of Organon’s actions will be scrutinized closely. This case underscores the importance of full transparency from corporations regarding their business practices and financial health following significant acquisitions. Investors are encouraged to act swiftly to protect their interests.

For queries or to learn about your rights, please contact Berger Montague at their official communication channels.