$TransMedics Group, Inc.(TMDX)$
TransMedics' shares dropped over 15% following accusations of misconduct in a report by Scorpion Capital.
TMDX: ▼13.31%
TransMedics Group (TMDX, Financial) faced a sharp 15% stock decline after Scorpion Capital released a damning report. The short seller accused the company of unethical behavior, including "mafia-style" extortion, racketeering, and organ trafficking, disguised as legitimate medical device operations. Scorpion Capital has set a $0 target price for TransMedics, asserting that its shares are worthless.
The report also alleges the company engaged in kickbacks, billing fraud, unreported device malfunctions, and widespread off-label use of its Organ Care System (OCS).
Scorpion Capital plans to file a Citizen Petition with the FDA, urging a suspension of Premarket Approval (PMA) for the OCS. Additionally, they intend to send a public letter to Congress, seeking investigations into potential abuses in the U.S. organ transplant system.
Modify on 2025-01-11 00:12
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- mizzmo·2025-01-14High risk here1Report