Rosen Law Firm Files Class Action Against Organon & Co.

2025-06-01 companies

New York, Sunday, 1 June 2025.
On 1 June 2025, Rosen Law Firm filed a class action lawsuit for Organon & Co. investors, citing misleading statements. Investors urged to act by July 22, 2025, to seek lead plaintiff status.

Background of the Class Action

The class action lawsuit filed by Rosen Law Firm on 1 June 2025 against Organon & Co. centers around allegations that the company misled investors with positive statements while concealing adverse facts about its business operations, particularly regarding capital allocation and dividend strategies. Organon, which is listed on the New York Stock Exchange under the ticker OGN, faced scrutiny for its alleged prioritization of debt reduction following its acquisition of Dermavant, an action that led to a significant reduction in regular quarterly dividends [1][2][3].

Key Allegations and Timeline

The lawsuit contends that Organon executives made misleading statements about the company’s financial health and future prospects, particularly after the decision to slash dividends from $0.28 per share to $0.02 per share on 1 May 2025. This announcement reportedly caused a sharp decline in the stock price, which fell approximately 27% after the news became public -26.914. As a result, Organon’s share price dropped dramatically from $12.93 on 30 April 2025 to $9.45 the following day [4][5][6].

Implications for Investors

Investors affected by Organon’s alleged misrepresentations are encouraged to participate in the class action to seek compensation. The deadline to move the Court to serve as a lead plaintiff is set for 22 July 2025. This role involves acting on behalf of the class in directing the lawsuit and potentially influencing the outcome. Until a class is certified, investors are not yet represented by any attorney unless they choose to secure one independently [7][8][9].

Potential Outcomes and Investor Action

The Rosen Law Firm advises investors of the potential for compensation through a contingency fee arrangement, meaning legal costs are covered only upon a successful outcome. As a global leader in investor rights, Rosen Law Firm has a robust track record in handling securities class actions, offering investors the opportunity to recover significant losses if the court rules favorably. The filing of this class action signals heightened vigilance required from shareholders towards corporate disclosures and governance, especially after acquisitions that impact financial strategies [1][10][11].

Sources

class action Organon