NEW YORK, Dec. 26, 2018 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Dentsply Sirona, Inc. ("Dentsply" or the "Company") (NASDAQ: XRAY). Investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Dentsply and certain of its officers and/or directors have violated the federal securities laws.
On August 9, 2017, Dentsply Sirona disclosed that the U.S. Securities and Exchange Commission ("SEC") had opened an investigation into the "Company's accounting and disclosures, including its accounting and disclosures relating to transactions with a significant distributor of the Company." In addition, Dentsply Sirona reported second quarter 2017 earnings that missed the lowest analyst estimates, cut its full-year guidance by over 5%, and recorded a non-cash goodwill impairment charge of $1.2 billion as a result of an "increase in competition" and the resulting impact on revenues and margins. In response to these disclosures, Dentsply Sirona's share price fell $5.18, or 8.4%, declining from $61.41 per share on August 8, 2017 to close at $56.23 per share on August 9, 2017.
Then, on October 2, 2017, Dentsply Sirona unexpectedly announced the departure of its three top executives, Chief Executive Jeffrey Slovin, Chief Operating Officer Christopher Clark, and Executive Chairman Bret Wise. On this news, Dentsply Sirona shares fell another $3.48, or 5.8%, declining from $59.81 per share on September 29, 2017 to close at $56.33 per share on October 2, 2017.
On May 6, 2018, Dentsply Sirona disclosed additional information revealing the impact of the antitrust conspiracy on the Company's financial results, reporting that organic revenue growth for the first quarter of 2018 was down 1.4%, driven largely by a 7.6% decline in the U.S. market. Dentsply Sirona also reported that on a segment basis, consumables declined 1.3% year-over-year, while equipment declined 1.6% year-over-year. As a result, the Company announced that it was reducing its 2018 guidance by $0.15 per share for the second time in nine months. In response to these disclosures, Dentsply Sirona's stock price fell $5.52, or 11%, over the next two trading days, declining from $49.99 per share on May 4, 2018 to close at $44.47 per share on May 8, 2018.
Last, on August 7, 2018, Dentsply Sirona announced another goodwill impairment charge of $1.265 billion and cut full year earnings guidance by approximately 20% due to continued significant destocking of product by its partner dealers. On this news, Dentsply Sirona shares declined $9.03, or 18.6%, to close at $39.41 on August 7, 2018, its lowest price in over five years.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
SOURCE Pomerantz LLP