Organogenesis Holdings, Inc. (ORGO) Failed to Disclose the Truth About its High Prices and Product Reimbursements
A class action was filed on behalf of all persons and entities that purchased or otherwise acquired Organogenesis Holdings, Inc. (NASDAQ: ORGO) securities between March 17, 2021 and October 11, 2021, for violations of the Securities Exchange Act of 1934. Organogenesis is a regenerative medicine company that develops, manufactures, and commercializes solutions for the advanced wound care and surgical and sports medicine markets in the U.S.
According to the complaint, during the class period, Defendants improperly billed the federal government for its Affinity and PuraPly XT products by setting the price for those products multiple times higher than similar products and improperly inducing doctors to use its Affinity and PuraPly XT products through lucrative reimbursements. As a result, the Company’s revenue and profits derived from its Affinity and PuraPly XT products were in substantial part unsustainable.
The truth came out on October 12, 2021, in an anonymous report published on Value Investors Club, an online website where investors share investment advice. On this news, Organogenesis’ stock price fell over 14%, to close at $10.35 per share on October 12, 2021.
If you acquired shares of Organogenesis Holdings, Inc. (ORGO) securities between March 17, 2021 and October 11, 2021, you have until February 8, 2022, to ask the court to appoint you lead plaintiff for the class.
Representation is on a contingency fee basis. Shareholders pay no fees or costs.