Full Press Release Details
SAN FRANCISCO, Jan. 13, 2025 (GLOBE NEWSWIRE) -- Shares of TransMedics, Group Inc. (NASDAQ: TMDX) suffered a sharp decline over the past two trading days following the release of a damaging report by activist short-seller Scorpion Capital. TransMedics’ stock price has dropped $9.84, or 13%, since Scorpion released a report, titled “Walk Like An Egyptian,” leveling serious allegations against the company, including fraud, organ trafficking, and off-label device misuse.
Hagens Berman has opened an investigation into the allegations and urges investors who purchased TransMedics shares and suffered substantial losses to submit your losses now.
Contact the Firm Now: TMDX@hbsslaw.com
The Scorpion report, based on a six-month investigation encompassing over 30 interviews with former employees, surgeons, transplant centers, organ procurement organizations, and major customers, paints a grim picture of TransMedics’ business practices. The report’s allegations center on the company’s warm perfusion technology platform, known as the Organ Care System (OCS), and its associated National OCS Program (NOP), which provides outsourced organ retrieval, management, logistics, and transportation.
Scorpion Capital alleges that the NOP operates as an “unsustainable, anti-competitive scheme” involving coercive tying, price extortion, and retaliation. The report further claims the NOP constitutes a “large-scale fraudulent billing racket,” predicated on overcharging hospitals for unnecessary flights.
Among the most serious accusations are claims of kickbacks to certain transplant surgeons and centers in exchange for using the OCS, and that TransMedics engages in “organ trafficking,” steering rejected organs to favored users in exchange for their participation in the NOP. Scorpion also alleges widespread off-label use of the OCS device and that the NOP pushes “unsafe, damaged organs rejected by reputable centers,” concealing adverse organ information to avoid losing device and aircraft fees.
Scorpion Capital has assigned a target price of $0 to TransMedics stock, suggesting the firm believes the company’s alleged misconduct poses an existential threat.
Hagens Berman’s Investigation of TransMedics Group, Inc.
TransMedics has previously touted its OCS as “the only FDA approved, portable, multi-organ, warm perfusion technology platform” and its NOP as providing a more efficient organ procurement process. Given the allegations in the Scorpion Report, these statements are now under intense scrutiny.
Shareholder rights firm Hagens Berman Sobol Shapiro LLP has initiated an investigation into whether TransMedics misled investors regarding its reported revenues and the propriety of its NOP strategy.
“We are investigating whether TransMedics may have intentionally misled investors about the legality of revenues it has historically reported and the propriety of its NOP strategy,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in TransMedics and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the TransMedics investigation, read more »
Whistleblowers: Persons with non-public information regarding TransMedics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email TMDX@hbsslaw.com.
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895