| COMPANY |
TransMedics Group, Inc. |
| COURT |
United States District Court for the District of Massachusetts |
| CASE NUMBER |
1:25-cv-10385 |
| JUDGE |
The Hon. Leo Theodore Sorokin |
| CLASS PERIOD |
February 28, 2023 through January 10, 2025 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS APRIL 15, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or otherwise acquired TransMedics Group, Inc. (“TransMedics”) (NASDAQ: TMDX) securities between February 28, 2023, and January 10, 2025, inclusive (the “Class Period”).
On February 27, 2023, TransMedics filed with the SEC its annual report on Form 20-F for the period ending December 31, 2022 (the “2022 Annual Report”). Attached to the 2022 Annual Report were certifications pursuant to the Sarbanes-Oxley Act of 2002 signed by certain TransMedics’ insidersattesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud.
On February 21, 2024, United States Congressman Paul A Gosar, D.D.S., of Arizona sent a letter to TransMedics accusing the company of multiple anti-competitive practices, including that TransMedics was pressuring hospitals to utilize their more expensive aircraft rather than less expensive third-party charters, not only for transportation of organs, but also for the movement of the company’s staff and equipment, and that TransMedics withheld access to its technology unless hospitals agreed to use the company’s costly aircraft for organ transport. On this news, the price of TransMedics stock fell $2.18 per share, or 2.5%, to close at $84.81 on February 22, 2024. The next day, it fell a further $1.67 per share, or 1.96%, to close at $83.14 per share on February 23, 2024.
On January 10, 2025, Scorpion Capital issued a short seller report on TransMedics. Specifically, the report alleged wrongdoing with respect to TransMedics’ business practices, including fraudulent billing schemes, off-label misuse of its devices, and reliance on kickbacks to drive sales. The report also highlighted ongoing regulatory scrutiny, with reports of investigations by the DOJ, IRS, and state attorney generals into Medicare fraud linked to organ acquisition costs. Additionally, the report makes claims regarding customer dissatisfaction, including prominent transplant centers discontinuing their use of TransMedics’ devices citing concerns over their clinical value. In response to the publication of the report, the price of TransMedics common stock declined $3.74 per share, or approximately 5%, from a close of $72.55 per share on January 8, 2025, to close at $68.81 per share on January 10, 2025.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) TransMedics used kickbacks, fraudulent overbilling, and coercive tactics to generate business and revenue; (2) TransMedics engaged in unsafe practices and hid safety issues and generally lacked safety oversight; and (3) the foregoing subjected TransMedics to heightened risk of scrutiny and regulatory risk.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.