SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP is investigating Dentsply Sirona Inc. (NASDAQ: XRAY) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws. Dentsply designs, develops, manufactures, distributes, and sells various dental products and technologies for professional dental markets worldwide.
If you would like more information about our investigation of Dentsply Sirona Inc.'s misconduct, click here.
What is this Case About: Dentsply Sirona Inc. (XRAY) is at risk of losing NASDAQ Listing Eligibility
On May 12, 2022, NASDAQ gave Dentsply formal notice that its failure to file its latest quarterly report with the Securities Exchange Commission ("SEC") violates NASDAQ listing rules and could result in delisting from the market.
On May 10, 2022, the Company announced its preliminary financial results for the first quarter of 2022. Among other things, the Company reported first quarter net sales decreased 6.1% to $965 million, compared to $1,027 million in the first quarter of 2021. Additionally, net income for the first quarter of 2022 was $65 million, or $0.30 per diluted share, compared to $117 million, or $0.53 per diluted share in the first quarter of 2021. Additionally, adjusted earnings per diluted share decreased to $0.52 compared to $0.72 in the first quarter of 2021.
Also on May 10, 2022, Dentsply informed the SEC that it could not file its 10Q on time because its board is investigating possible financial reporting violations concerning sales incentives offered to distributors, which account for most of its U.S. business. The Company's NT-10Q stated: "The Audit Committee's investigation is focused on the Company's use of incentives to sell products to distributors in the third and fourth quarters of 2021 and whether those incentives were appropriately accounted for and the impact of those sales was adequately disclosed in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). The Audit Committee is also investigating allegations that certain former and current members of senior management directed the Company's use of these incentives and other actions to achieve executive compensation targets in 2021."
The investigation, which began in March, led to the dismissal of the Company's CEO on April 19, 2022, and the resignation of former Dentsply CFO, Jorge Gomez, who left Dentsply May 6, became CFO at Moderna, Inc. May 9, and resigned on May 10.
Next Steps: If you own shares of Dentsply Sirona Inc. (XRAY), you have legal options. Contact us for more information.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Dentsply Sirona Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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