The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of those who acquired Dentsply Sirona Inc. (“Dentsply Sirona” or the “Company”) (NASDAQ: XRAY) securities from June 9, 2021 through May 9, 2022, both dates inclusive (the “Class Period”). ”). Investors have until August 1, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Dentsply Sirona produces a wide array of dental supplies, ranging from anesthetics, plaque and gum disease prevention, tooth polishers, and artificial teeth. The Company sells approximately two-thirds of its dental consumable and technology and equipment products through third-party distributors.
On April 19, 2022, Dentsply Sirona announced the sudden termination of Defendant Casey as CEO and as a member of the Board of Directors. On this news, the price of Dentsply Sirona shares declined by $6.52 per share, or approximately 13.38%, from $48.72 per share to close at $42.20 per share on April 19, 2022.
On May 10, 2022, Dentsply Sirona filed with the SEC a Form 12b-25 Notification of Late Filing in which it announced that the Audit Committee of its Board of Directors had commenced an internal investigation regarding certain financial reporting matters. Specifically, Dentsply Sirona disclosed that the Audit Committee was investigating “the Company’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 the Company’s SEC filings. In addition, the Audit Committee disclosed that it was investigating allegations that “certain former and current members of senior management directed the Company’s use of these incentives and other actions to achieve executive compensation targets in 2021.” As a result, Dentsply Sirona was unable to file its quarterly report with the SEC on Form 10-Q for the first quarter ended March 31, 2022. On this news, the price of Dentsply Sirona shares declined by $2.87 per share, or approximately 7.31%, from $39.25 per share to close at $36.38 per share on May 10, 2022.
The lawsuit alleges that, during the Class Period, Defendants inflated Dentsply Sirona’s revenue and earnings by manipulating its accounting for a distributor rebate program in order for senior executives to be eligible for significant cash and stock-based incentive compensation. Dentsply Sirona and its executives allegedly made numerous false and misleading statements to investors during the Class Period. As a result of Defendants’ alleged misrepresentations, Dentsply Sirona’s common stock traded at artificially inflated prices during the Class Period.
If you purchased or otherwise acquired Dentsply Sirona securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
investigations@kmllp.com
