A securities class action has been filed against Dentsply Sirona Inc. (XRAY) behalf of all persons or entities that purchased or otherwise acquired Dentsply Sirona Inc.’s (“Dentsply” or the “Company”) common stock between June 9, 2021 through May 9, 2022. This case has been filed in the USDC – Ohio (Southern).
For the first half of the year, Dentsply met the applicable financial performance targets, entitling top executives, including Donald M. Casey, Jr. (“Casey”) and Jorge Gomez (“Gomez”), to the maximum compensation under the 2021 First Half Annual Incentive Plan. As a result of what the Company acknowledged was a “faster recovery” to start the year, Defendant Gomez told investors that “second half ramp is going to be a little bit less than what we thought initially when we modeled 2021.”
In order to ensure that they received at least some of their awards under the 2021 Second Half Annual Incentive Plan, Defendants appear to have orchestrated a scheme to inflate the Company’s revenue and earnings by manipulating the way in which Dentsply recognized revenue tied to certain distributor rebate and incentive programs.
As a result of this scheme, many of the statements Defendants made to investors were materially false or misleading.
The Complaint alleges that during the Class Period, Dentsply touted its “go-tomarket strategy” and “more sophisticated and strategic incentive plans” as drivers of the Company’s success. Dentsply also assured investors that it complied with Generally Accepted Accounting Principles (“GAAP”) and maintained adequate internal controls over financial reporting, yet the Company announced revenues and earnings that were inflated by the improper recognition of revenue. As a result of these misrepresentations, Dentsply stock traded at artificially inflated prices throughout the Class Period.