#USA #New York #Pomerantz LLP #Dentsply Sirona #XRAY

DENTSPLY SIRONA Inc. Faces Class Action Lawsuit

In recent developments, the Pomerantz Law Firm has announced that a class action lawsuit has been initiated against DENTSPLY SIRONA Inc. (NASDAQ: XRAY), focusing on the financial hardships faced by investors following significant drops in share value linked to the company's practices. This lawsuit draws attention to the potential involvement of certain officers and directors in securities fraud and other unethical business actions. Shareholders who have incurred losses are encouraged to act promptly, as there are important deadlines approaching for participation in this class action.

Overview of the Case

The lawsuit stems from allegations that DENTSPLY engaged in unlawful business practices that misled investors. Shareholders who purchased or acquired securities during the Class Period are particularly advised to file to become Lead Plaintiffs by January 27, 2025. Investors interested in more details can reach out to the firm directly.

This legal action follows DENTSPLY's controversial acquisition of Byte in late 2020, where the company invested $1.04 billion in cash for the clear dental aligners manufacturer. However, the situation escalated on October 24, 2024, when DENTSPLY announced a voluntary suspension of sales for its Byte products amid regulatory scrutiny. This unexpected move was flagged as a precautionary measure while the company reviewed compliance with regulatory obligations for its direct-to-consumer offerings.

In the aftermath, DENTSPLY warned that it anticipates non-cash charges related to the impairment of goodwill ranging between $450-$550 million in its Orthodontic and Implant Solutions division. Such revelations significantly impacted the company's stock value, which plummeted by over 4% following the announcement.

Financial Implications

Further compounding the issue, on November 7, 2024, DENTSPLY disclosed additional financial woes during their third-quarter earnings call. They reported a substantial non-cash charge for goodwill impairment of approximately $495 million within the same segment, which prompted a downward revision of the company's financial outlook for 2024. The anticipated organic sales performance was adjusted from a previous range of flat to -1% to between -3.5% to -2.5%. Similarly, the earnings-per-share forecast was decreased significantly.

Such drastic changes in financial outlook and corporate strategy contributed to a staggering 28% drop in DENTSPLY's stock price within a week, closing at $17.26 per share. These fluctuations raise critical questions about the company's management and their responsibilities to shareholders.

Next Steps for Affected Shareholders

Shareholders affected by these developments are urged to reach out to Pomerantz LLP for guidance on joining the class action lawsuit. With a legacy spanning over 85 years in the fields of corporate law, securities, and antitrust litigation, Pomerantz has been instrumental in securing substantial recoveries for investors impacted by corporate misconduct. Their commitment to advocating for the rights of shareholders remains a cornerstone of their operations.

For interested parties, more information is available on the Pomerantz website, which includes the full complaint documents and updates on the class actions filed. It’s essential for shareholders to be proactive in this matter as the deadline approaches, ensuring that their voices are heard in the fight against corporate wrongdoing.

Conclusion

As the legal proceedings unfold, the case against DENTSPLY SIRONA serves as a crucial reminder of the importance of transparency and ethical conduct in business practices. Shareholders must stay informed about their rights and the potential outcomes of the ongoing litigation.