A securities class action has been filed in the USDC — S.D.N.Y. against Dentsply Sirona, Inc. (XRAY) (“Dentsply Sirona,” “Dentsply,” or the “Company”), on behalf of all those that purchased or otherwise acquired Dentsply common stock between December 1, 2022, and November 6, 2024, both dates inclusive (the “Class Period”).
Dentsply manufactures professional dental products, for example, CAD/CAM computer-aided design and manufacturing systems, imaging equipment, motorized dental handpieces, consumables (e.g., files, sealers, needles), implants, prosthetics, and orthodontics, such as clear aligners. Dental and medical devices sold by Dentsply in the United States, including clear aligners, are generally classified by the U.S. Food and Drug Administration (“FDA”) into a category that makes them subject to the same regulations that apply to all medical devices. Dentsply’s four segments are: Connected Technology Solutions, Essential Dental Solutions, Wellspect Healthcare, and Orthodontic and Implant Solutions, which includes SureSmile, an aligner solution provided through clinician offices, and Byte, a direct-to-consumer (“DTC”) aligner solution.
The claim arises on November 7, 2024, before the markets opened, when the truth was revealed when Dentsply reported its financial results for the third quarter of 2024, ended September 30, 2024.
The complaint alleges that Defendants failed to disclose that:
(1) Dentsply targeted low-income people who did not have access to good oral hygiene education, a dentist, or dental insurance, which often meant patients signing up for Byte had underlying dental issues that would have made them ineligible for treatment;
(2) the push for Byte growth and sales commissions caused sales employees to sell to contraindicated patients;
(3) as a result of the above, the Byte patient onboarding workflow did not provide adequate assurance that contraindicated patients did not enter treatment;
(4) before and during the Class Period, reports of Byte patient injuries were pouring in;
(5) Dentsply knew that its Byte aligners were causing severe patient injuries for years but did little to investigate those injuries or notify the FDA;
(6) Dentsply had no systems in place to notify the FDA of these injuries, which the Company is required to do within 30 days of learning of a problem;
(7) the FDA had received a sharp uptick in reports of serious injuries from Byte patients;
(8) because of the above, Dentsply materially overstated the goodwill value of Byte;
(9) as a result of the above, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times, thereby harming investors.
On this news, the price of Dentsply stock fell $6.72 per share, or more than 28%, from a closing price of $23.98 per share on November 6, 2024, to a closing price of $17.26 per share on November 7, 2024, on extraordinary trading volume.
If you purchased Dentsply common stock during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information.”
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.