Dentsply Sirona has been in the news frequently as of late... and not for good reasons. It seems that the behemoth company has potentially violated federal securities laws. The CEO was terminated in a sudden and unanticipated move on April 19th, then the CFO Jorge Gomez left and was hired by vaccine maker Moderna. One day after Moderna hired him, Gomez was terminated when the company learned that Dentsply Sirona had started an investigation that included him. This is the kind of thing one expects in a novel, not in the real world.
Now comes a press release from a law firm that is looking to litigate over stock losses of Dentsply Sirona. Here is the press release:
Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, is investigating potential securities fraud claims on behalf of shareholders of DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (NASDAQ: XRAY) resulting from allegations that Dentsply Sirona might have issued misleading information to the investing public.
On April 19, 2022, the Company announced that Donald M. Casey Jr. ("Casey") had been terminated as the Company's Chief Executive Officer ("CEO") and had also ceased to serve as a member of the Board of Directors of the Company, effective that same day. Casey had served as the Company's CEO since joining the Company in February 2018.
On May 10, 2022, the Company announced its preliminary financial results for the first quarter of 2022. Among other things, the Company reported first quarter net sales decreased 6.1% to $965 million, compared to $1,027 million in the first quarter of 2021. Additionally, net income for the first quarter of 2022 was $65 million, or $0.30 per diluted share, compared to $117 million, or $0.53 per diluted share in the first quarter of 2021. And adjusted earnings per diluted share decreased to $0.52 compared to $0.72 in the first quarter of 2021.
On that same day, the Company also announced that it was unable to file its Quarterly Report on Form 10-Q for the period ended March 31, 2022. The Company revealed that in March 2022, an internal investigation had commenced into allegations regarding certain financial reporting matters submitted by current and former employees of the Company. The investigation was focused on the Company's use of incentives to sell products to distributors in the third and fourth quarters of 2021, whether those incentives were appropriately accounted for, and whether the impact of those sales was adequately disclosed in the Company's periodic reports filed with the SEC. Dentsply also revealed that the Company's Audit Committee was investigating allegations that certain former members of senior management directed the Company's use of these incentives and other actions to achieve executive compensation targets in 2021. The Audit Committee retained independent outside counsel to assist in its investigation. The Company also announced that it had voluntarily contacted the SEC to advise it that an internal investigation was underway, and that it was unable to file the Form 10-Q on a timely basis.
On this news, the price of Dentsply Sirona stock declined over 7% to close at $36.38 per share on May 10, 2022.
If you purchased Dentsply Sirona securities, and/or would like to discuss your legal rights and options please visit DENTSPLY SIRONA Inc. Shareholder Investigation or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco Bernstein Liebhard LLP https://www.bernlieb.com (212) 951-2030 pallocco@bernlieb.com
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