SAN DIEGO, Feb. 19, 2025 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired TransMedics Group, Inc. (NASDAQ: TMDX) (“TransMedics” or the “Company”) securities between February 28, 2023 and January 10, 2025 (the “Class Period”), charging the Company and certain senior executives with violations of the federal securities laws (collectively, “Defendants”).

TransMedics investors have until April 15, 2025 to seek appointment as lead plaintiff of the TransMedics class action lawsuit.

If you purchased or acquired TransMedics securities between February 28, 2023 and January 10, 2025, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/transmedics/.

You can also contact DiCello Levitt attorneys Brian O’Mara or Ruben Peña by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.

Case Allegations

TransMedics is a commercial-stage medical technology company transforming organ transplant therapy for end-stage lung, heart, and liver failure patients. The Company developed the Organ Care System (“OCS”) to transform organ preservation by replicating many aspects of the organ’s natural living and functioning environment outside of the human body. TransMedics’ logistics services include aviation transportation, ground transportation, and other coordination activities.

The TransMedics lawsuit alleges that Defendants made materially false and/or misleading statements during the Class Period about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) TransMedics used kickbacks, fraudulent overbilling, and coercive tactics to generate business and revenue; (2) TransMedics engaged in unsafe practices, hid safety issues, and generally lacked safety oversight; and (3) the foregoing subjected TransMedics to heightened risk of scrutiny and regulatory risk.

The truth began to emerge on February 21, 2024 when U.S. Representative Paul Gosar issued a letter accusing TransMedics of misconduct, including that “TransMedics is not a collaborative partner in transplantation as administrators continue to push back against its coercive tactics.” The next day, The Daily Caller published an article highlighting the allegations in Representative Gosar’s letter, noting that “TransMedics Aviation carries significantly higher costs than [hospitals’] current providers. Some transplant centers have reported being pressured to use TransMedics’ captive aircraft, at nearly double the cost, or risk losing access to TransMedics’ life saving device.”

On this news, the price of TransMedics stock fell by $2.18 per share, or 2.5%, to close at $84.81 per share on February 22, 2024.

The truth was fully revealed on January 10, 2025 when Scorpion Capital issued a scathing report about TransMedics (the “Report”), claiming the Company overbills hospitals that use its services; stating the Company provides patients with organs previously rejected by reputable physicians through physicians who TransMedics paid; and verifying the allegations in Representative Gosar’s letter. In particular, the Report details the Company’s “OCS Liver, [is] a gimmick used not for any clinical benefit but for a) off-label use for scheduling [and] b) by questionable centers whom we believe receive kickbacks and organs in exchange for taking them on the device”; “TransMedics OCS devices are plagued by failures leading to the loss of a significant percentage of organs”; and “TransMedics data was always under scrutiny because of multiple violations . . . and warning letters . . . because the [U.S. Food and Drug Administration] was aware that they are not conducting themselves in the most honest manner.”

On this news, the price of TransMedics stock fell by $3.74 per share, or 5.15%, to close at $68.81 per share on January 10, 2025. TransMedics stock then fell a further $4.76 per share, or 6.9%, to close at $64.05 per share on January 13, 2025.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise – for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations – and our capital – on the line for our clients.

DiCello Levitt has achieved top recognition as Plaintiffs Firm of the Year and Trial Innovation Firm of the Year by the National Law Journal, in addition to its top-tier Chambers and Benchmark ratings. The New York Law Journal also recently recognized DiCello Levitt as a Distinguished Leader in trial innovation. For more information about the Firm, including recent trial victories and case resolutions, please visit www.dicellolevitt.com.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Media Contact

Amy Coker
4747 Executive Drive, Suite 240
San Diego, CA 92121
619-963-2426
investors@dicellolevitt.com