NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into TransMedics Group, Inc. (NASDAQ: TMDX) for potential violations of the federal securities laws.
If you invested in TransMedics, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/transmedics-group-inc.
Why Did TransMedics’s Stock Drop?
TransMedics is a medical technology company that develops systems to preserve and assess organs for transplantation. It claimed that its significant revenue growth was due to legitimate business factors, such as the diversification of its business. TransMedics also discussed how competition benefitted the company and that it was significantly outpacing any competition given the technological superiority of the company’s systems.
In truth, it appears that TransMedics fueled its growth by engaging in an anti-competitive scheme, including providing kickbacks to medical providers. The company further boosted growth by engaging in billing fraud and promoting off-label use.
The Stock Declines as the Truth is Revealed
On October 28, 2024, the company reported that its revenue growth for 3Q 24 was roughly half that reported in 2Q 24. Still, TransMedics assured investors that the disappointing growth was not caused by a change in competitive dynamics or market share loss. Despite this assurance, the news caused the price of TransMedics stock to drop almost 30%, from $126.24 per share on October 28, 2024 to $88.50 per share on October 29, 2024.
On December 2, 2024, TransMedics announced the resignation of its CFO from that role and narrowed its financial outlook for 2024. Then, on January 10, 2025, Scorpion Capital issued a research report explaining that TransMedics’s growth was fueled by an anti-competitive scheme that included kickbacks to medical providers to use the company’s products and that TransMedics further boosted growth by operating an organ trafficking scheme, engaged in widespread billing fraud, and promoted off-label use. The publication of the Scorpion Capital report caused the price of TransMedics stock to decline an additional 5%, from $72.55 per share on January 8, 2025 to $68.81 per share on January 10, 2025.
Click here for more information: https://www.bfalaw.com/cases-investigations/transmedics-group-inc.
What Can You Do?
If you invested in TransMedics you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/transmedics-group-inc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/transmedics-group-inc
Attorney advertising. Past results do not guarantee future outcomes.
