Dentsply Sirona Inc. Class Action Lawsuit - XRAY
- Company Name
- Dentsply Sirona Inc.
- Stock Symbol
- Class Period
- June 9, 2021 to May 9, 2022
- Motion Deadline
- August 1, 2022
- Southern District of Ohio
The Dentsply Sirona class action lawsuit seeks to represent purchasers of Dentsply Sirona Inc. (NASDAQ: XRAY) common stock between June 9, 2021 and May 9, 2022, inclusive (the “Class Period”). The Dentsply Sirona class action lawsuit – captioned City of Miami General Employees’ & Sanitation Employees’ Retirement Trust v. Casey, No. 22-cv-02371 (S.D. Ohio) – charges Dentsply Sirona and certain of its former top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Dentsply Sirona class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Dentsply Sirona class action lawsuit must be filed with the court no later than August 1, 2022.
CASE ALLEGATIONS: Dentsply Sirona produces a wide array of dental supplies, ranging from anesthetics, plaque and gum disease prevention, tooth polishers, and artificial teeth. As (former) executives of Dentsply Sirona, defendants Donald M. Casey, Jr. and Jorge Gomez were eligible for significant cash- and stock-based incentive compensation. Given the challenges posed by the ongoing COVID-19 pandemic, Dentsply Sirona bifurcated its annual incentive plans for executives into two six-month periods. The funding levels for each plan were wholly dependent on Dentsply Sirona’s financial performance for the applicable half of 2021.
For the first half of the year, Dentsply Sirona met the applicable financial performance targets, entitling top executives, including Casey and Gomez, to the maximum compensation under the 2021 first half annual incentive plan. But as the Dentsply Sirona class action lawsuit alleges, to ensure that they received at least some of their awards under the 2021 second half incentive plan, defendants appear to have orchestrated a scheme to inflate Dentsply Sirona’s revenue and earnings by manipulating the way in which Dentsply Sirona recognized revenue tied to certain distributor rebate and incentive programs.
On April 11, 2022, Dentsply Sirona announced that Gomez had “resigned” as Chief Financial Officer, but assured investors that his departure was “not the result of any dispute or disagreement with [Dentsply Sirona or its] management or the Board of Directors of [Dentsply Sirona] on any matter relating to [Dentsply Sirona’s] operations, policies or practices.”
Then, on April 19, 2022, Dentsply Sirona announced that its Board of Directors had terminated Casey, Dentsply Sirona’s Chief Executive Officer, effective immediately and with no succession plan in place. As a result of this disclosure, the price of Dentsply Sirona shares declined by approximately 13%.
Finally, on May 10, 2022, Dentsply Sirona announced the Audit and Finance Committee of its Board of Directors was investigating Dentsply Sirona’s “use of incentives to sell products to distributors in the third and fourth quarters of 2021” and “whether those incentives were appropriately accounted for” in Dentsply Sirona’s periodic reports with the U.S. Securities and Exchange Commission. Dentsply Sirona also disclosed that the committee is investigating allegations that “certain former and current members of senior management directed [Dentsply Sirona’s] use of these incentives and other actions to achieve executive compensation targets in 2021.” On this news, the price of Dentsply Sirona shares declined an additional 7%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Dentsply Sirona common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.