NEW YORK--(BUSINESS WIRE)-- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of those who acquired TransMedics Group, Inc. (“TransMedics” or the “Company”) (NASDAQ:TMDX) securities during the period from February 28, 2023, through January 10, 2025 (“the Class Period”). Investors have until April 15, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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On February 21, 2024, U.S. Representative Paul Gosar issued a letter accusing TransMedics of misconduct including misappropriating corporate resources. This letter was reported on by The Daily Caller during market hours on February 22, 2024. Rep. Gosar’s letter focused on TransMedics pricing of use of the TransMedics Organ Care System (the “OCS”). In his letter, Rep. Gosar stated that “almost immediately [following FDA approval for the OCS in 2021], the cost of the one-time disposable cassette utilized to encompass the organ during transportation and perfusion increased from the initial $7,000 to greater than $60,000 per disposable cassette.” Rep. Gosar further states that “TransMedics is not a collaborative partner in transplantation as administrations continue to push back against its coercive tactics.” Additionally, Rep. Gosar notes allegations that “TransMedics uses private aircraft for convenient transportation for their staff and equipment, where no urgency exists” and that “many transplant centers are uncomfortable asking Medicare for reimbursement due to the increased costs associated with the use of TransMedics NOP.” On this news, the price of TransMedics fell by $2.18 per share, from $86.99 per share on February 21, 2024, to close at $84.81 on February 22, 2024.

On February 26, 2024, TransMedics’ CEO, Dr. Waleed Hassanein, released a letter denying Rep. Gosar’s allegations.

Then, on January 10, 2025, Scorpion Capital issued a 300+ slide report about TransMedics (the “Report”). The Report, which claimed to be based on more than 30 interviews, accused TransMedics of, among other things, overbilling hospitals that use its services, effectively forcing customers to use certain services, and providing to patient organs that had been rejected by reputable physicians, by way of physicians who were paid by TransMedics. The Report also purported to verify the substance of Rep. Gosar’s claims. On this news, the price of TransMedics shares declined by $3.74 per share, from $72.55 per share on January 8, 2025, to close at $68.81 on January 10, 2025.

The complaint alleges that defendants, throughout the Class Period, made false and/or misleading statements and/or failed to disclose that: (1) TransMedics used kickbacks, fraudulent overbilling, and coercive tactics to generate business and revenue; (2) TransMedics engaged in unsafe practices and hid safety issues and generally lacked safety oversight; and (3) the foregoing subjected TransMedics to heightened risk of scrutiny and regulatory risk.

If you purchased or otherwise acquired TransMedics securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters without any cost to you.

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Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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