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NYSE: OGN INVESTOR ALERT: Berger Montague Advises Organon & Co. (NYSE: OGN) Investors of July 22, 2025 Deadline
OGNOrganon & (OGN) GlobeNewswire News Room·2025-06-03 15:51

Core Viewpoint - A securities class action lawsuit has been filed against Organon & Co. for alleged misrepresentation regarding its capital allocation priorities following the acquisition of Dermavant [1][3]. Company Overview - Organon & Co. is a healthcare company focused on women's health, headquartered in Jersey City, NJ [2]. - In October 2024, Organon acquired Dermavant, a biopharmaceutical company, for 1.2billion[2].LawsuitDetailsThelawsuitclaimsthatdespiteincreasingdebtfromtheDermavantacquisition,Organonassuredinvestorsitwouldmaintainitsdividendasits"1capitalallocationpriority"[3].Thesuitallegesthataftertheacquisition,Organonshifteditscapitalallocationfocustodebtreductioninsteadofmaintainingdividendpayouts[3].DividendAnnouncementOnMay1,2025,Organonannouncedasignificantreductioninitsdividendpayoutfrom1.2 billion [2]. Lawsuit Details - The lawsuit claims that despite increasing debt from the Dermavant acquisition, Organon assured investors it would maintain its dividend as its "1 capital allocation priority" [3]. - The suit alleges that after the acquisition, Organon shifted its capital allocation focus to debt reduction instead of maintaining dividend payouts [3]. Dividend Announcement - On May 1, 2025, Organon announced a significant reduction in its dividend payout from 0.28 per share to 0.02pershare,statingthatreturningcapitaltoshareholderswasalowerpriority[4].Followingthisannouncement,Organonsstockpricefellby0.02 per share, stating that returning capital to shareholders was a lower priority [4]. - Following this announcement, Organon's stock price fell by 3.48 per share, approximately 27%, from 12.93onApril30,2025,to12.93 on April 30, 2025, to 9.45 on May 1, 2025 [4].