Organon & Co. (NYSE: OGN): Organon & Co. (“Organon” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Organon securities. The case is pending in the U.S. District Court for the District of New Jersey and is captioned: Hauser v. Organon & Co., et al., No. 25-cv-05322.
 
If you incurred losses on your investments in Organon, you are encouraged to submit your information.
 
Why was Organon Sued for Securities Fraud?
 
Organon is a global healthcare company focused on women’s health that has historically rewarded its shareholders with a healthy dividend. In October 2024, Organon completed a $1.2 billion acquisition of Dermavant, a biopharmaceutical company focused on dermatological conditions. As alleged, while the acquisition increased Organon’s debt, the Company assured investors it would maintain its dividend, which Organon asserted was its “#1 capital allocation priority.”
 
In truth, Organon had shifted its capital allocation priority after the Dermavant acquisition to focus on reducing its debt, ultimately leading the Company to severely cut its dividend.
 
The Stock Declines as the Truth is Revealed
 
On May 1, 2025, Organon announced that management reset the Company’s dividend payout from $0.28 per share to $0.02 per share. Organon’s CEO explained that the Company “reset our capital allocation priorities to accelerate progress towards deleveraging” and that “[b]y deleveraging more rapidly, we will continue to strengthen the future prospects of the company.” Organon’s CFO added, “[t]he biggest issues we face . . . relate to managing our leverage and relate to growth. And we need capital to solve both of those issues, and so returning capital to shareholders is right now, less of a priority.”
 
On this news, the price of Organon stock declined roughly 27%, from $12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025.
 
What are my Rights?
 
If you purchased or otherwise acquired Organon securities, you may ask the Court no later than July 22, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
 
If you incurred losses on your investments in Organon, you are encouraged to submit your information to speak with an attorney about your rights.
 
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
 
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
 
Why Bleichmar Fonti & Auld LLP?
 
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
 
Attorney advertising. Past results do not guarantee future outcomes.