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INVESTOR DEADLINE APPROACHING: Faruqi & Faruqi, LLP Investigates Claims on Behalf of Investors of Organon
OGNOrganon & (OGN) GlobeNewswire News Room·2025-05-25 12:49

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Organon & Co. due to misleading statements regarding its capital allocation strategy, particularly concerning dividends and debt reduction, which led to significant financial losses for investors [3][5]. Group 1: Legal Investigation and Class Action - Faruqi & Faruqi is encouraging investors who suffered losses exceeding 75,000inOrganonbetweenOctober31,2024,andApril30,2025,todiscusstheirlegaloptions[1].AfederalsecuritiesclassactionhasbeenfiledagainstOrganon,withadeadlineofJuly22,2025,forinvestorstoseektheroleofleadplaintiff[3].Thefirmhasahistoryofrecoveringhundredsofmillionsofdollarsforinvestorssinceitsfoundingin1995[4].Group2:FinancialMisrepresentationDefendantsprovidedmisleadinginformationaboutOrganonscommitmenttoregularquarterlydividends,claimingitwasa"1capitalallocationpriority"whileconcealingtheprioritizationofdebtreductionfollowingtheacquisitionofDermavant[5].Themisleadingstatementsresultedina7075,000 in Organon between October 31, 2024, and April 30, 2025, to discuss their legal options [1]. - A federal securities class action has been filed against Organon, with a deadline of July 22, 2025, for investors to seek the role of lead plaintiff [3]. - The firm has a history of recovering hundreds of millions of dollars for investors since its founding in 1995 [4]. Group 2: Financial Misrepresentation - Defendants provided misleading information about Organon's commitment to regular quarterly dividends, claiming it was a "1 capital allocation priority" while concealing the prioritization of debt reduction following the acquisition of Dermavant [5]. - The misleading statements resulted in a 70% decrease in the regular quarterly dividend, causing shareholders to purchase securities at artificially inflated prices [5]. Group 3: Market Reaction - Following the revelations about Organon's financial practices, the company's stock price dropped from 12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025, marking a decline of over 27% in just one day [6].