Organon & (US:OGN) Prnewswireยท2025-06-09 19:11Core Viewpoint - A securities class action lawsuit has been filed against Organon & Co. for alleged misrepresentation regarding its capital allocation priorities and dividend payouts following its acquisition of Dermavant [1][3][4]. 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 $1.2 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]. - Following the acquisition, Organon allegedly shifted its capital allocation focus to debt reduction, contrary to its previous assurances [3]. Dividend Changes - On May 1, 2025, Organon announced a significant reduction in its dividend payout from $0.28 per share to $0.02 per share, citing a reset of capital allocation priorities to prioritize deleveraging [4]. - This announcement led to a decline in Organon's stock price by $3.48 per share, approximately 27%, from $12.93 to $9.45 on the following day [4].