SAN DIEGO — A class action lawsuit has been filed against TransMedics Group, Inc., a medical technology company specializing in organ transplant therapy for patients with end-stage organ failure. The complaint, handled by Robbins Geller Rudman & Dowd LLP, involves allegations of securities fraud. Individuals who purchased or acquired TransMedics securities between February 28, 2023, and January 10, 2025, are urged to seek appointment as lead plaintiff by April 15, 2025.
The suit, formally titled Jewik v. TransMedics Group, Inc., and filed in the District Court of Massachusetts, accuses TransMedics and some of its executives of issuing false statements and concealing activities that violated the Securities Exchange Act of 1934. These actions presumably jeopardized the safety standards and legality of the company’s practices.
According to allegations in the lawsuit, TransMedics purportedly engaged in unlawful practices including using kickbacks and overbilling methods. It is further alleged that coercive tactics were employed to bolster business, operations described in the suit as lacking appropriate safety protocols. These actions, plaintiffs argue, significantly exposed TransMedics to severe regulatory and legal consequences.
The case took a public turn when U.S. Representative Paul Gosar issued a condemning letter on February 21, 2024, which detailed some of the accused misconduct by TransMedics. Following the publication of this letter by The Daily Caller on February 22, TransMedics’ stock experienced a notable price drop.
Further legal challenges for TransMedics emerged when, on January 10, 2025, a scathing report by Scorpion Capital was released. The report accused the company of multiple malpractices including severe overbilling and the unethical procurement of business by pushing hospitals into contractual obligations that favored TransMedics. Additionally, there were claims that TransMedics pressured physicians to use organs which had been rejected by other reputable sources, again impacting the company’s stock prices.
Potential plaintiffs, especially those who faced substantial financial losses, have the chance, as stipulated by the Private Securities Litigation Reform Act of 1995, to lead the class action lawsuit. This leadership role would allow them to oversee the lawsuit and potentially influence the magnitude and distribution of any financial settlements.
Robbins Geller Rudman & Dowd LLP, representing the class action, is well recognized for its specialization in securities litigation, often securing significant monetary relief for investors. The firm’s record includes the largest securities class action recovery in history, a $7.2 billion settlement from the Enron Corp. Securities Litigation.
The implications of this legal battle are profound, touching on the integrity of corporate practices in sectors as critical as medical technology and organ transplantation. The outcomes of this lawsuit could set precedents for regulatory scrutiny and operational transparency within the industry.
For further inquiries or to join the lawsuit, affected parties are encouraged to contact attorneys J.C. Sanchez or Jennifer N. Caringal of Robbins Geller directly.
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