U.S. Markets close in 5 hrs
  • S&P 500

    3,886.70
    +41.62 (+1.08%)
     
  • Dow 30

    31,295.31
    +257.63 (+0.83%)
     
  • Nasdaq

    11,545.93
    +184.08 (+1.62%)
     
  • Russell 2000

    1,762.48
    +34.93 (+2.02%)
     
  • Crude Oil

    104.02
    +5.49 (+5.57%)
     
  • Gold

    1,743.50
    +7.00 (+0.40%)
     
  • Silver

    19.28
    +0.12 (+0.63%)
     
  • EUR/USD

    1.0172
    -0.0012 (-0.1221%)
     
  • 10-Yr Bond

    2.9670
    +0.0540 (+1.85%)
     
  • Vix

    25.97
    -0.76 (-2.84%)
     
  • GBP/USD

    1.1996
    +0.0075 (+0.6250%)
     
  • USD/JPY

    135.9200
    +0.0050 (+0.0037%)
     
  • BTC-USD

    20,902.33
    +729.54 (+3.62%)
     
  • CMC Crypto 200

    456.07
    +11.75 (+2.65%)
     
  • FTSE 100

    7,196.76
    +88.99 (+1.25%)
     
  • Nikkei 225

    26,490.53
    +382.88 (+1.47%)
     

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Organogenesis Holdings Inc. (ORGO) Investors

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

LOS ANGELES, December 17, 2021--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Organogenesis Holdings Inc. ("Organogenesis" or the "Company") (NASDAQ: ORGO) securities between March 17, 2021 and October 11, 2021, inclusive (the "Class Period"). Organogenesis investors have until February 8, 2022 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On October 12, 2021, an anonymous report was published on Value Investors Club, a website for investors to share ideas. The report alleged that Organogenesis has been improperly billing the federal government for $250 million annually. It also claimed that the Company had priced its new wound covering product, Affinity, "exorbitantly high" – and since Medicare reimburses for the product, the high prices make it lucrative for doctors to use through large rebates. The report claimed that Organogenesis was using a similar pricing tactic for its new PuraPly XT product.

On this news, Organogenesis’ stock fell $1.70, or 14%, to close at $10.35 per share on October 12, 2021, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) Organogenesis improperly billed the federal government for its Affinity and PuraPly XT products by, among other things, setting the price for those products multiple times higher than similar products; (ii) the Company improperly induced doctors to use its Affinity and PuraPly XT products through lucrative reimbursements; (iii) as a result of all the foregoing, the Company’s revenue and profits derived from its Affinity and PuraPly XT products were at least in substantial part unsustainable; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.

Follow us for updates on Twitter: twitter.com/FRC_LAW.

If you purchased Organogenesis securities during the Class Period, you may move the Court no later than February 8, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Organogenesis securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211217005146/en/

Contacts

The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com