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Organon & Co. (OGN) Faces Investor Scrutiny Amid Improper Wholesale Sales Practices, Abrupt CEO Departure -- Hagens Berman
Globenewswireยท 2025-10-27 22:22
Core Viewpoint - Organon & Co. experienced a significant drop in share price following the announcement of an investigation into improper sales practices and the resignation of CEO Kevin Ali, raising concerns about the company's internal controls and financial reporting [1][4]. Group 1: Company Investigation and Findings - An independent internal investigation revealed that certain wholesalers were encouraged to purchase more Nexplanon than needed, particularly at the end of 2022 and throughout 2024 and 2025, which helped Organon meet revenue expectations [4]. - The investigation led to the termination of the Head of U.S. Commercial & Government Affairs and the resignation of CEO Kevin Ali without severance or equity-related retirement benefits [4]. Group 2: Market Reaction and Legal Implications - Following the announcement, Organon's share price fell by $2.10, representing a 23% decrease, indicating severe market reaction to the news [1]. - Hagens Berman, a national shareholders rights firm, has initiated an investigation to determine if Organon and its former CEO misled investors regarding compliance with accounting rules and the effectiveness of internal controls [2][3].