TransMedics Group, Inc. (TMDX) Investigation

The Scorpion Report

The Scorpion report, based on a six-month investigation encompassing over 30 interviews with former employees, surgeons, transplant centers, organ procurement organizations, and major customers, paints a grim picture of TransMedics’ business practices. The report’s allegations center on the company’s warm perfusion technology platform, known as the Organ Care System (OCS), and its associated National OCS Program (NOP), which provides outsourced organ retrieval, management, logistics, and transportation.

Scorpion Capital alleges that the NOP operates as an “unsustainable, anti-competitive scheme” involving coercive tying, price extortion, and retaliation. The report further claims the NOP constitutes a “large-scale fraudulent billing racket,” predicated on overcharging hospitals for unnecessary flights.

Among the most serious accusations are claims of kickbacks to certain transplant surgeons and centers in exchange for using the OCS, and that TransMedics engages in “organ trafficking,” steering rejected organs to favored users in exchange for their participation in the NOP. Scorpion also alleges widespread off-label use of the OCS device and that the NOP pushes “unsafe, damaged organs rejected by reputable centers,” concealing adverse organ information to avoid losing device and aircraft fees.

Scorpion Capital has assigned a target price of $0 to TransMedics stock, suggesting the firm believes the company’s alleged misconduct poses an existential threat.

Hagens Berman’s Investigation of TransMedics Group, Inc.

TransMedics has previously touted its OCS as “the only FDA approved, portable, multi-organ, warm perfusion technology platform” and its NOP as providing a more efficient organ procurement process. Given the allegations in the Scorpion Report, these statements are now under intense scrutiny.

Shareholder rights firm Hagens Berman Sobol Shapiro LLP has initiated an investigation into whether TransMedics misled investors regarding its reported revenues and the propriety of its NOP strategy.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the TMDX investigation about?

We are investigating whether TransMedics may have intentionally misled investors about the legality of revenues it has historically reported and the propriety of its NOP strategy.

WHAT SHOULD I DO?

I worked at TMDX. What should I do?

If you were an employee of TMDX, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in TMDX, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any TMDX investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.