Boston, Massachusetts – Newsfile Corp. – June 3, 2022 – Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations by Dentsply Sirona Inc. (“Dentsply” or the “Company”) (NASDAQ: XRAY), a manufacturer of professional dental products and technologies.
On April 19, 2022, the Company filed a Form 8-K announcing that Donald M. Casey Jr. had been “terminated as the Company’s Chief Executive Officer and has ceased to serve as a member of the Board of Directors of the Company, effective as of April 19, 2022.”
On this news, shares of the Company fell $6.52 per share (a 13.4% decline) to close at $42.20 per share on April 19, 2022.
On May 10, 2022, before the market open, the Company filed a Form 12b-25, Notification of Late Filing (“Notice of Late Filing”), with the U.S. Securities and Exchange Commission (“SEC”) disclosing that it would be unable to timely file its Form 10-Q for three months ended March 31, 2022.
In the Notice of Late Filing, the Company disclosed that “[i]n March 2022, the Audit and Finance Committee of the Company’s Board of Directors (the ‘Audit Committee’) commenced an internal investigation of allegations regarding certain financial reporting matters submitted by current and former employees of the Company.” According to the Company, “[t]he Audit Committee’s investigation is focused on 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 and the impact of those sales was adequately disclosed in the Company’s periodic reports filed with the [SEC].” Further, “[t]he Audit Committee is also 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.”
On this news, shares of the Company were down $2.87 per share (a 7.3% decline) to close at $36.38 per share on May 10, 2022.
About the Securities Class Action Filed
On June 2, 2022, a securities class action was filed in the U.S. District Court for the Southern District of Ohio against Dentsply and certain of the Company’s former senior executives (collectively, “Defendants”) on behalf of investors in Dentsply common stock between June 9, 2021 and May 9, 2022, inclusive (the “Class Period”).
The class action complaint alleges that “Defendants appear to have orchestrated a scheme to inflate the Company’s revenue and earnings by manipulating the way in which Dentsply recognized revenue tied to certain distributor rebate and incentive programs.” Further, “[a]s a result of this scheme, many of the statements Defendants made to investors were materially false or misleading.” According to the complaint, “during the Class Period, Dentsply touted its ‘go-to-market strategy’ and ‘more sophisticated and strategic incentive plans” as drivers of the Company’s success. Dentsply also assured investors that it complied with Generally Accepted Accounting Principles (‘GAAP’) and maintained adequate internal controls over financial reporting, yet the Company announced revenues and earnings that were inflated by the improper recognition of revenue.”
How to Seek Appointment as Lead Plaintiff
If you wish to serve as Lead Plaintiff for the Class, you must file a motion to serve as Lead Plaintiff with the Court no later than August 1, 2022. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class. An investor’s ability to share in any potential future recovery is not dependent upon serving as Lead Plaintiff.
If you sustained losses in excess of $500,000 from your transactions in Dentsply securities during the Class Period and are interested in learning more about serving as Lead Plaintiff, please provide your information here: Shareholder Contact | Berman Tabacco.
A Lead Plaintiff is appointed by the court to represent the members of the putative class in the lawsuit. Typically, the Lead Plaintiff is the applicant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
Berman Tabacco typically represents individuals and entities in class actions on a contingency fee basis, meaning we advance all attorneys’ fees and expenses in the litigation. If the case is successful, the firm will ask the court to award the firm attorneys’ fees and the reimbursement of expenses from any settlement fund. If we are not successful, you will not be responsible for the reimbursement of attorneys’ fees or expenses.
About Berman Tabacco
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has over 35 years of experience litigating class action case and has offices in Boston, Massachusetts and San Francisco, California. Learn more about our firm here.
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Jay Eng, Esq.
One Liberty Square
Email: [email protected]
The issuer is solely responsible for the content of this announcement.