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OGN INVESTOR ALERT: Organon & Co. Investors with Substantial Losses Have Opportunity to Lead the Organon Class Action Lawsuit
OGNOrganon & (OGN) Prnewswire·2025-05-23 21:31

Core Viewpoint - The Organon class action lawsuit alleges that the company and its executives made misleading statements regarding capital allocation and dividend payouts, leading to significant financial losses for investors [1][4][5]. Company Overview - Organon & Co. develops health solutions through prescription therapies and medical devices [3]. Allegations of the Lawsuit - The lawsuit claims that Organon concealed material information about its capital allocation priorities, particularly regarding the future of its quarterly dividend payout [4]. - It is alleged that Organon's reports on dividend payouts being a "number one priority" were misleading, as they were countered by a newly implemented debt reduction strategy, resulting in a more than 70% decrease in the quarterly dividend [4]. - Following the acquisition of Dermavant Sciences Ltd., Organon prioritized debt reduction, which was not disclosed to investors [4]. Financial Impact - On May 1, 2025, Organon reported its first quarter 2025 financial results, announcing a drastic reduction in its dividend payout from $0.28 to $0.02, which led to a more than 27% drop in the stock price [5]. Legal Process - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Organon securities during the class period to seek appointment as lead plaintiff in the lawsuit [6]. - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [7].