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Dentsply Sirona?
Contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest in Dentsply Sirona Inc. (NASDAQ: XRAY) by no later than June 2021 and still hold your shares?
- Are you concerned about Dentsply Sirona’s disclosures regarding its inability to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2022 due to “internal investigation of certain financial reporting matters,” as disclosed in its recent 8-K report?
- Are you concerned about the allegations of false statements and omissions of material fact related to expected revenues and earnings by certain of Dentsply Sirona’s executives, among others?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation via email at arosca@rscounsel.law, leave a message through the contact form on this page, or call us at 888-998-0530.
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The Dentsply Sirona class action investigation page is a resource for investors who invested in Dentsply Sirona shares by no later than June 2021 and would like to evaluate compensation claims.
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Posted August 24, 2022
Dentsply Sirona Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating allegations of securities violations, corporate misconduct, misrepresentations, and/or questionable business practices involving Dentsply Sirona and have identified potential areas of concern.
What Dentsply Investors May Do
XRAY stock investors who invested by no later than June 2021, and are interested to evaluate potential options to seek compensation and/or pursue claims related to their Dentsply investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Dentsply.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned XRAY stock investors may contact attorneys Alan Rosca or Paul Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
About Dentsply Sirona Inc.
Dentsply Sirona Inc. is a Charlotte, North Carolina-based corporation, reportedly founded in 1899, that claims to be “the world’s largest manufacturer of professional dental products and technologies.” Marketing materials issued by Dentsply Sirona indicate that the company operates two segments: technologies & equipment, and consumables, and reportedly conducts business in over 150 countries selling the majority of its products through third-party distributors.
Dentsply Sirona’s commons stock is traded on the Nasdaq Global Market under the symbol “XRAY.” According to data provided by Yahoo! Finance, over the years that followed its listing on Nasdaq, the XRAY price per share registered a relatively consistent growth in value that lasted until the first week of January 2008, when the price per XRAY closed at $46.65. The price per share then started to decline until it closed at $22.45 during the first week of March 2008.
Between March 2008 and November 2017, the price per XRAY share resumed its upward trajectory, and on November 28, 2017 closed at $68.58. Over the next year the XRAY share price started to decline until it closed at $34.32 on October 29, 2018. The price per XRAY share started to appreciate until it reached $60.74 on January 22, 2020.
Between January 22 and March 23, 2020, the price per XRAY share declined to close at $31.90, which was followed by a gain in value to close at $69.12 per share on May 10, 2021. Since then, save some fluctuation, the price per XRAY share has been declining. On August 23, 2022, the price per XRAY share closed at $34.30.
According to Google Finance, the XRAY share price declined more than 43% over the last year, and over 39% YTD.
Dentsply Sirona Class Action Complaints Allege Violations of Securities Laws
In June 2022, in the U.S. District Court for the Southern District of Ohio, a class action complaint was filed against Dentsply Sirona Inc., Dentsply’s Chief Executive Officer and Director between February 2018 and April 2022 Donald M. Casey Jr., and Dentsply’s Chief Financial Officer and Executive Vice President from August 2019 until April 11, 2022, Jorge Gomez. Almost two months later, on July 26, 2022, a second class action complaint was filed against the same defendants in the U.S. District Court for the Southern District of New York (the July complaint).
The plaintiffs in the two class action complaints made similar allegations that, among others, the Defendants made false and misleading statements regarding Dentsply’s revenue recognition practices and certain distributor rebate and incentive programs.
The Securities and Exchange Commission Issued a Cease and Desist Order Against Dentsply Sirona for Alleged Violation of Securities Law
In December 2020, the Securities and Exchange Commission issued a Cease and Desist Order against Dentsply Sirona alleging that the company failed to disclose in its filings for the first three quarters of 2016, that it sold to its exclusive distributor for the United States, identified by the July complaint as Patterson Companies, Inc., more of its dental technologies equipment than the distributor could sell to retail purchasers. The Commission further alleged that because the distributor’s inventories were at all-time high, the distributor allegedly started to negotiate key terms of the next contract to reduce inventory levels, while Dentsply allegedly was trying to minimize the impact the negotiation would have on the company’s net sales. By failing to inform investors of these alleges uncertainties, Dentsply allegedly was in violation of the securities rules.
Dentsply Sirona’s Plan to Incentivize Its Top Management
The complaints alleged that, in an attempt to motivate its executives to boost company’s earnings that were reportedly affected by the COVID-19 pandemic, Dentsply Sirona allegedly divided its existing executive compensation plans for 2021 into two six-month periods. The incentive plans allegedly conditioned incentive payments to company’s executives, including Casey and Gomez, on meeting certain performance criteria during each half of 2021.
According to the class action complaints, as a result of meeting the expected financial performance targets for the first half of 2021, Dentsply’s executives were allegedly rewarded the maximum compensation under the 2021 First Half Annual Incentive Plan. In addition, on June 9, 2021, Jorge Gomez allegedly cautioned the investors that the second half of 2021 “is going to be a little bit less” than initially projected.
The Alleged Scheme to Inflate Dentsply Sirona’s Financial Performance
During the June 9, 2021, Goldman Sachs Global, Jorge Gomez stated that Dentsply’s financial performance was due, among others, to improved “go-to-market strategy” which included “more sophisticated and strategic incentive plans,” the complaints allege.
In an 8-K report filed with the SEC on November 4, 2021, Dentsply informed investors that the company, among others, recorded 21.1% revenue increase, and increased operating income. The 8-K also quoted company’s CEO Don Casey who reportedly stated that Dentsply’s teams “have also done a commendable job navigating supply chain bottlenecks to deliver products to our customers.”
On February 28, 2022, in the 8-K Report announcing net sales and earnings for the fourth quarter and full year 2021 results, Dentsply reported full year 2021 net revenue of $4.25 billion and adjusted EBITDA of $992 million. The report also quoted Don Casey who reportedly attributed Dentsply’s positive results to “the resilience of the dental market, the strength of our global portfolio, and our team’s ability to execute well in an environment still impacted by the pandemic.”
The series of positive reports abruptly ended on April 2022, when Dentsply Sirona filed an 8-K report announcing that “Donald M. Casey Jr. has 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.” The report further indicated that “the individual who was serving as the Company’s Chief Financial Officer” was to be replaced.
On May 10, 2022, Dentsply Sirona filed a Form 12b-25, announcing its inability to timely file the Form 10-Q for the period ended March 31, 2022. Dentsply further elaborated that in March 2022 the Board of Directors commenced an internal investigation concerning “Company’s use of incentives to sell products to distributors in the third and fourth quarter of 2021 and whether those incentives were appropriately accounted for and in the impact of those sales was adequately disclosed.” The notification further indicates that the Board of Directors is also investigating “allegations that 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.”
The complaints allege that the April and May announcements each had a negative impact on the price per XRAY shares, and as a result, the plaintiffs sought compensatory damages, with interest, as well as fees and costs. Both class actions are currently pending.
In a business update filed with the SEC on August 4, 2022, Dentsply informed its investors that the internal investigation “regarding certain financial reporting matters” was still ongoing and that the company is unable to timely file its quarterly report for the period ended June 30, 2022. Dentsply further announced that the investigation is also evaluating “certain other accounting practices” and that the company anticipates previously announced preliminary first quarter financial results to be adjusted. The company added that it is currently evaluating whether the financial results for 2021 will also require adjustments.
Dentsply Sirona Shareholders May Have Options
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato LLC are investigating potential options and are evaluating potential claims on behalf of XRAY shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Dentsply Sirona investor who invested in or before June 2021 and are concerned about your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your case, or to provide useful information. All consultations are free. The Rosca Scarlato LLC attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Dentsply Sirona investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
These general considerations are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts, and can tailor any advice to that investor’s facts. The Dentsply Sirona Class Action Investigation page is not affiliated with Dentsply Sirona Inc. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
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DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.