Robbins Geller Files Class Action Against Organon for Investor Losses During Class Period

Overview of the Organon Class Action Lawsuit

On July 9, 2025, Robbins Geller Rudman & Dowd LLP announced the filing of a class action lawsuit on behalf of investors who purchased publicly traded securities of Organon & Co. (NASDAQ: OGN) within the time frame of November 3, 2022, to April 30, 2025. This case, known as Lerner v. Organon & Co., aims to hold Organon and some of its top executives accountable for alleged violations of the Securities Exchange Act of 1934 during this Class Period.
The lawsuit comes in light of recent revelations that Organon’s executives may have provided misleading statements regarding the company's financial health and projections for its key product, Nexplanon.

Allegations and Implications of Misleading Information

The core allegations in the class action claim that throughout the specified Class Period, Organon misrepresented its potential for sales growth and oversold the sustainability of its financial metrics. Specifically:
1. Exaggerated Sales Growth: The lawsuit asserts that the long-term sales growth of Nexplanon was overestimated. Organon misled investors into believing that it was on course to reach $1 billion in sales by the end of 2025, a target which now seems unattainable based on the company's recent performance and market conditions.
2. Unrealistic Dividend Sustainability: Before its dividend reduction announcement in May 2025, Organon purported to be maintaining a significant free cash flow that would allow it to offer dividends to shareholders. However, the lawsuit claims that due to lower-than-expected sales, the company could not sustain its hefty dividend payouts.
3. Debt Levels and Ratings: The lawsuit further contends that Organon failed to maintain the necessary leverage ratios that could allow it to uphold its corporate debt ratings, posing a risk to the company’s financial stability.
4. Stock Price Impact: Following the dividend cut announcement on May 1, 2025, Organon’s share price plummeted by over 27% as investors reacted to the drastic restructuring of the company’s capital allocation priorities. This sharp decline highlights the direct financial impact of the allegedly misleading information.

The Role of the Lead Plaintiff Process

The Private Securities Litigation Reform Act of 1995 enables any investor who experienced significant losses from Organon securities during the Class Period to apply as lead plaintiff in this class action. The selected lead plaintiff is typically the investor with the most substantial financial interest impacted by the prosecution of the case and can represent the interests of all class members. It is essential to note that participating as a lead plaintiff is not required to receive any potential compensation resulting from the lawsuit. Investors interested in joining must submit their applications by July 22, 2025.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is regarded as a preeminent securities litigation firm, having secured considerable compensation for victims of fraud and misconduct within the financial sector. With 200 lawyers spanning ten offices worldwide, the firm boasts a strong track record for recovering funds for its clients, with over $2.5 billion awarded to investors in 2024 alone.
For more information on the Organon class action lawsuit or to view the full complaint, you can visit the Robbins Geller website or contact their attorneys for more details on how to get involved in this important case.