Class action lawsuit filed against DENTSPLY SIRONA Inc. sparks outrage

In the United States, on December 21, 2024, two law firms announced class action lawsuits against Dentsply Sirona Inc. The Rosen Law Firm and Kaplan Fox & Kilsheimer LLP are filing claims on behalf of investors for alleged securities fraud. The relevant Class Period for the Rosen Law Firm's case spans from February 28, 2022, to November 6, 2024, while Kaplan Fox's case covers a slightly earlier period from May 6, 2021, to November 6, 2024. Investors who purchased Dentsply common stock during these times may be entitled to compensation without incurring any out-of-pocket costs due to a contingency fee agreement. The lawsuits center around claims that Dentsply Sirona made numerous misleading statements regarding its Byte aligners, which are marketed as a direct-to-consumer orthodontic solution. The complaints allege that the company targeted low-income individuals who lacked sufficient access to dental care, essentially enabling patients with serious underlying dental issues to undergo treatment. The push for increased sales and growth of Byte aligners reportedly led sales representatives to overlook essential medical qualifications and potentially encourage unsuitable patients to engage in treatment. As a result, the onboarding process for Byte was said to have inadequately screened for contraindications that could lead to severe patient harm. Moreover, the lawsuits highlight a pattern of negligence concerning reported injuries to Byte patients. Allegedly, the company was aware of numerous serious injuries tied to its products yet failed to investigate the claims adequately or alert the U.S. Food and Drug Administration as required by regulatory laws. The failure to notify the FDA is particularly serious because companies are mandated to report any issues within 30 days of receiving information about adverse effects. There has been a noted increase in reports of injuries associated with Byte aligners that Dentsply Sirona did not address appropriately. The impacts of these failures culminated in a significant market reaction, leading to a drastic drop in Dentsply's stock price. Following the company’s announcement of a voluntary suspension of Byte product sales on October 24, 2024, shares plummeted 4.5%. Another stock drop of approximately 28% followed an earnings report on November 6, 2024, which provided a disappointing outlook on organic sales. Thus, investors are now seeking to hold Dentsply accountable for the alleged misleading information that contributes to their financial losses, seeking counsel from firms with pertinent experience in securities class actions, given the complicated nature of investor litigation. Overall, these class actions are timely, as investors are reminded that the deadline to file as a lead plaintiff in either lawsuit is quickly approaching. Both firms encourage affected purchasers to join the class actions to potentially recover losses in an environment where proper regulatory compliance and corporate responsibility appear to be in question.