Dentsply Sirona Inc.

Case Details

Class Period: June 9, 2021 - May 9, 2022
Date Filed: June 02, 2022
Case Number: 2:22cv02371
Jurisdiction: Ohio Southern District Court
icon-casetype Case Type: Securities Case
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Case Summary

Dentsply is a dental equipment manufacturer with offices across the United States. Dentsply produces a wide array of dental supplies, ranging from anesthetics, plaque and gum disease prevention, tooth polishers, and artificial teeth. The Company distributes approximately two-thirds of its dental consumable technology and equipment products through third-party distributors. The complaint alleges that, throughout the Class Period, Defendants orchestrated a scheme to inflate the Company’s revenue and earnings by manipulating its accounting for a distributor rebate program in order for senior executives to be eligible for significant cash and stock-based incentive compensation. In order to facilitate this scheme, Dentsply and its executives made numerous false and misleading statements to investors during the Class Period. As a result of Defendants’ misrepresentations, Dentsplys common stock traded at artificially inflated prices during the Class Period. The truth about Dentsplys misconduct was revealed through a series of disclosures, beginning on April 19, 2022, when Dentsply announced the sudden termination of its CEO Don Casey. Then, on May 10, 2022, Dentsply announced that, following reports from several whistleblowers, the Audit Committee of its Board of Directors had commenced an internal investigation regarding certain financial reporting matters. Specifically, Dentsply disclosed that the Audit Committee was investigating the Companys’s use of incentives to sell products to distributors in the third and fourth quarter of 2021 and whether those incentives were appropriately accounted for. Further, the Audit Committee was also investigating allegations that certain former and current members of senior management directed the Companys’s use of these incentives and other actions to achieve executive compensation targets in 2021. As a result of these disclosures, Dentsplys share price declined precipitously.