Organon & (OGN) Prnewswire·2025-05-23 21:57Core Viewpoint - A class action lawsuit has been filed against Organon & Co. for allegedly misleading investors regarding its capital allocation strategy, particularly concerning its debt reduction efforts and dividend payouts [1][2][3]. Group 1: Allegations and Misleading Information - The complaint claims that during the class period, Organon prioritized its capital allocation strategy through regular quarterly dividends, presenting it as the "1 capital allocation priority" [2]. - It is alleged that while making these positive statements, Organon concealed the high priority of its debt reduction strategy following the acquisition of Dermavant, which led to a 70% decrease in the regular quarterly dividend [3]. Group 2: Impact of the Announcement - The truth about the company's financial strategy was revealed on May 1, 2025, when Organon announced a significant reduction in its dividend payout from 0.02 to recapture capital [4]. - Following this announcement, Organon's stock price fell from 9.45 per share on May 1, 2025, marking a decline of over 27% [4]. Group 3: Class Action Participation - Shareholders may be eligible to participate in the class action against Organon & Co., with options to serve as lead plaintiff or remain an absent class member [5]. - The representation in the class action is on a contingency fee basis, meaning shareholders will not incur fees or expenses [6].