Workflow
DEADLINE APPROACHING: Berger Montague Advises Organon & Co. (NYSE: OGN) Investors to Inquire About a Securities Fraud Class Action by July 22, 2025
Organon & Organon & (US:OGN) GlobeNewswire News Roomยท2025-07-10 12:08

Core Viewpoint - A securities class action lawsuit has been filed against Organon & Co. for alleged misrepresentations regarding its capital allocation and sales growth of its product Nexplanon during the class period from November 3, 2022, to April 30, 2025 [1][4]. Group 1: Lawsuit Details - The lawsuit claims that despite acquiring Dermavant for $1.2 billion, Organon assured investors it would maintain its dividend as its top capital allocation priority, which was later shifted to debt reduction [2][3]. - Allegations include failure to disclose risks related to Nexplanon, leading to overestimated sales growth projections and the likelihood of not achieving a $1 billion milestone payment from Merck & Co. [4]. Group 2: Financial Impact - On May 1, 2025, Organon announced a significant reduction in its dividend payout from $0.28 per share to $0.02 per share, causing its stock price to drop by approximately 27%, from $12.93 to $9.45 per share [5].