Faruqi & Faruqi Alerts DENTSPLY SIRONA Investors About Class Action Lawsuit

Faruqi & Faruqi, LLP reminds investors about an ongoing class action lawsuit against DENTSPLY SIRONA Inc. with a significant deadline upcoming.

Investors who have experienced losses exceeding $75,000 in Dentsply from February 28, 2022, to November 6, 2024, are encouraged to reach out to partner James (Josh) Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal options.

Ongoing Investigation into Dentsply

On December 26, 2024, a significant development in the case was announced. Faruqi & Faruqi, a respected national securities law firm, is actively investigating potential claims related to DENTSPLY SIRONA Inc. The firm specifically reminds investors of the approaching January 27, 2025 deadline to apply for the role of lead plaintiff in the federal securities class action.

Since its founding in 1995, Faruqi & Faruqi has successfully recovered substantial amounts for investors. For more information, visit their website.

Allegations Against Dentsply

The complaints against Dentsply allege that the company and its executives have violated federal securities laws. Key claims include:

1. Dentsply's marketing strategies targeted low-income individuals who often lacked proper dental care, frequently leading them to enroll in Byte despite having underlying dental issues.
2. The drive for Byte’s growth, coupled with aggressive sales commissions, led to employees selling products to inappropriate candidates.
3. Dentsply failed to ensure that patients with contraindications were effectively filtered out in the onboarding process.
4. Throughout the class period, there was a reported increase in patient injuries associated with Byte products.
5. The company was aware of the severe injuries caused by Byte but inadequately investigated or reported these incidents to the FDA.
6. Dentsply lacked proper protocols for notifying the FDA of any injury reports within the required timeframe.
7. There was a noted increase in the number of serious injury reports received by the FDA concerning Byte patients.
8. The company has been accused of significantly overstating the goodwill value of Byte due to the aforementioned points.
9. Positive statements made by the defendants regarding the company’s operations were misleading and lacked a solid basis.

Impact of Recent Developments

After the market closed on October 24, 2024, Dentsply announced a voluntary suspension of Byte Aligners and Impression Kits sales. This decision was made as the company reviews certain regulatory requirements. The announcement also indicated potential non-cash charges for goodwill impairment ranging from $450 million to $550 million.

The following day, during a business update call, CEO Simon D. Campion revealed that the existing patient onboarding process may not adequately prevent contraindicated patients from receiving treatment.

This news led to a more than 4% drop in Dentsply's stock price, closing at $23.31 per share on October 25, down from $24.41 on October 24.

On November 7, 2024, prior to the markets opening, Dentsply reported significant financial losses including a non-cash goodwill impairment charge of $495 million. During the earnings call that day, Campion indicated that while a decision about Byte's future was not yet finalized, the company was considering a range of strategic options.

The market reacted sharply, resulting in a price drop of over 28% in the stock, which decreased from a closing price of $23.98 on November 6 to $17.26 on November 7.

Becoming a Lead Plaintiff

In legal terms, the lead plaintiff is the individual with the most substantial financial stake in the class action and who can accurately represent the class's interests. Anyone affected by the situation can apply to be the lead plaintiff through their legal counsel or remain an uninvolved class member.

Contact for Further Information

Faruqi & Faruqi also urges anyone with relevant information regarding Dentsply’s actions, including whistleblowers and former employees, to get in touch.

For more information on the DENTSPLY SIRONA class action, visit www.faruqilaw.com/XRAY or call partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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investors, lawsuit, Dentsply