NEW YORK, January 17, 2022 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against Organogenesis Holdings Inc. (“Organogenesis” or the “Company”) (NASDAQ: ORGO) and certain of its officers. The class action, filed in United States District Court for the Eastern District of New York, and registered under 21-cv-06845, is on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired securities of Organogenesis between March 17, 2021 and October 11, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of federal securities laws and to pursue remedies under Sections 10(b) and 20( (a) the Securities Exchange Act of 1934 (the “Exchange Act”) and rule 10b-5 promulgated thereunder, against the Company and certain of its principal officers.
If you are a shareholder who purchased securities of Organogenesis during the Class Period, you have until February 8, 2022 ask the court to name you as the lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those applying by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
Organogenesis is a regenerative medicine company that develops, manufactures and markets solutions for the advanced wound care, surgical and sports medicine markets in the United States. The Company’s products include “Affinity” and “PuraPly XT”, among others. Affinity is a dressing product used to support the treatment of a variety of wound sizes and types. PuraPly XT is an antimicrobial barrier used for a wide variety of wound types.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Organogenesis improperly billed the federal government for its Affinity and PuraPly XT products by, among other things, fixing the price of those products several times higher than similar products; (ii) the Company improperly incentivized physicians to use its Affinity and PuraPly XT products through lucrative reimbursements; (iii) as a result of all of the foregoing, the Company’s revenues and profits from its Affinity and PuraPly XT products were at least largely unsustainable; and (iv) as a result, the Company’s public statements were materially false and misleading at all material times.
At October 12, 2021, a short, anonymous report dealing with organogenesis was published on Value Investors Club, an online website where investors share investment ideas (the “VIC Report”). The VIC report alleged, among other things, that the company improperly billed the federal government for $250 million annually. The VIC report also alleged that the company had priced its new bandage, Affinity, “exorbitantly[,]that Medicare reimbursed, while making the product lucrative for physicians to use through deep discounts, and the company used a similar tactic for its new PuraPly XT product.
At this news, Organogenesis stock price plummeted $1.70 per share, or 14.11%, to close at $10.35 per share on October 12, 2021.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
