Organogenesis Holdings Inc. Securities Fraud Class Action

Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Organogenesis Holdings Inc. (“Organogenesis”) (NASDAQ: ORGO) securities between August 10, 2020 and August 9, 2022, inclusive (the “Class Period”).

Organogenesis primarily manufacturers and sells skin substitute products used in the treatment of chronic and acute wounds. During the Class Period, the complaint alleges that Defendants engaged in a scheme of marketing the difference, or “spread,” between how much Organogenesis charged physicians for two of its skin substitute products—Affinity and PuraPly XT—and the amount physicians were reimbursed by certain Medicare Administrative Contractors (“MAC”).

The complaint alleges that, throughout the Class Period, Defendants misrepresented and/or failed to disclose that: (1) the rapid increase in Affinity and PuraPly XT demand and sales in the physician offices was being driven by the company’s marketing scheme; (2) Organogenesis’s competitive edge was entirely dependent on this unsustainable scheme; (3) Organogenesis was unable to effectively turnover its sales from the scheme to sales on the basis of the clinical benefits of its products; (4) which would lead to diminished demand and revenue once these products had an established  average selling price (“ASP”) set by Medicare (5) leading to a decline in Affinity sales that Organogenesis attributed to the operating market rather than the ASP; and (6) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Current Status of Case:
On March 29, 2024, the Court granted Defendants’ Motion to Dismiss. This action has concluded.

If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.

ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.