Investigation Reveals Possible Securities Law Violations at TransMedics Group
New York, February 2, 2025 — Leading securities law firm Bleichmar Fonti & Auld LLP is conducting an investigation into TransMedics Group, Inc. (NASDAQ: TMDX) for potential violations of federal securities laws.
What Investors Should Do
If you invested in TransMedics, it is advisable to seek additional information by visiting https://www.bfalaw.com/cases-investigations/transmedics-group-inc.
The Reasons Behind TransMedics’s Stock Drop
TransMedics Group is a medical technology company specializing in organ preservation and assessment systems for transplantation. The company has previously attributed its growth to legitimate business factors, such as diversification and competitive advantages. However, recent allegations suggest that TransMedics may have engaged in anti-competitive practices, kickbacks to medical providers, billing fraud, and off-label product promotion to boost its financial standing.
Critical Milestones in the Decline
On October 28, 2024, TransMedics announced that its revenue growth for the third quarter was significantly lower than the second quarter, despite assuring investors that competition was not the cause. Despite this, the stock price plummeted nearly 30%, dropping from $126.24 to $88.50 per share.
Further, on December 2, 2024, TransMedics CFO resigned, and the company downsized its financial outlook for the year. Scorpion Capital issued a report on January 10, 2025, accusing TransMedics of fraudulent activities, leading to an additional 5% stock price drop to $68.81 per share.
Details of the Allegations
The investigation by Scorpion Capital detailed allegations of illegal kickbacks to medical providers to use TransMedics’s products. Moreover, the report alleged that TransMedics had engaged in widespread billing fraud and promoted their products off-label, which is a violation of FDA regulations.
What Actions You Can Take
Investors in TransMedics have legal avenues available to them, and Bleichmar Fonti & Auld LLP encourages shareholders to submit their information for review. The law firm operates on a contingency fee basis, meaning there are no upfront costs to investors. Shareholders are not responsible for covering any legal fees or expenses.
To learn more, visit https://www.bfalaw.com/cases-investigations/transmedics-group-inc or contact:
Ross Shikowitz
212-789-3619
About Bleichmar Fonti & Auld LLP
Bleichmar Fonti & Auld LLP is a leading international law firm focused on plaintiff representation in securities class actions and shareholder litigation. Named among the Top 5 plaintiff law firms by ISS SCAS in 2023, the firm has achieved notable successes, including over $900 million in recoveries from Tesla, Inc., and $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/transmedics-group-inc
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