Organon & (US:OGN) Prnewswireยท2025-06-02 18:00Core 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 new debt reduction strategy that resulted in a more than 70% decrease in the quarterly dividend [4]. - Following the acquisition of Dermavant Sciences Ltd., Organon reportedly prioritized debt reduction over dividend payouts [4]. Financial Impact - On May 1, 2025, Organon announced a reduction in its dividend payout from $0.28 to $0.02, which led to a stock price decline of over 27% [5].