According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that:
- Organon faced a higher risk of loss of exclusivity and price erosion as to Nexplanon than implied by its Class Period statements;
- as a result, Organon’s long-term Nexplanon sales growth was not as strong as defendants’ portended during the Class Period, and would not reach $1 billion by the end of fiscal year 2025 (much less upwards of $1.5 billion after that), and that Organon was likely not on track to achieve the $1 billion milestone payment from Merck & Co. on its Nexplanon sales thereafter;
- thus, Organon was not on track to achieve, much less maintain, the $1 billion in free cash flow required to sustain its outsized dividend;
- consequently, Organon was also not on track to maintain 4.0x debt leverage; (v) as such, Organon might not be able to maintain its corporate debt ratings at their then-current Class Period levels; and
- as a result, Organon lacked a reasonable basis to report its Class Period business metrics and financial projections.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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