Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
TMDX.US
id: 1499
TransMedics (TMDX) Fraudulent Billing and Coercion Case
D. Massachusetts
Court1:25-cv-10385
Case number02/28/2023
Class period Start01/10/2025
Class period End04/15/2025
Lead Plaintiff motion deadline- $TMDX investors filed a lawsuit against TransMedics Group, alleging the company misled shareholders by concealing fraudulent billing practices, coercive business tactics, and safety concerns related to its organ transplant technology.
- On January 10, 2025, a Scorpion Capital report accused TransMedics of inflating costs, overbilling hospitals, and engaging in organ trafficking schemes. Following this news, $TMDX dropped 12.3%.
- $TMDX investors can join this case to be notified about potential recovery.
Case Details:
Between February 28, 2023, and January 10, 2025, TransMedics assured investors that its Organ Care System (OCS) and National OCS Program (NOP) were revolutionizing organ transplantation while maintaining strong ethical and financial practices. The company emphasized rising demand, market leadership, and regulatory compliance to support its revenue growth.
However, multiple investigations revealed that TransMedics engaged in fraudulent overbilling, coercion, and unsafe practices. The company allegedly forced transplant centers to use its costly services, overcharged hospitals through unnecessary private jet transport, and provided organs that had been rejected by reputable surgeons.
On February 21, 2024, U.S. Representative Paul Gosar accused TransMedics of misusing corporate resources and engaging in price gouging, highlighting that the cost of a single-use OCS cassette had jumped from $7,000 to over $60,000.
On January 10, 2025, Scorpion Capital released a report uncovering widespread kickbacks, forced service bundling, and falsified safety records. The report accused TransMedics of engaging in an "organ trafficking scheme", in which rejected organs were allegedly steered toward specific transplant centers in exchange for using the OCS system. It also revealed that unlicensed foreign surgeons and poorly trained technicians were handling organ retrieval and transport, leading to botched procedures and wasted donor organs.
Following this news, $TMDX dropped 12.3%.
Based on these events, $TMDX investors filed a lawsuit against TransMedics, claiming the company:
- It misled investors by concealing fraudulent billing practices and coercive business tactics.
- It downplayed serious ethical concerns, including safety risks and improper organ handling.
Investors believe TransMedics misrepresented its financial integrity and operational ethics.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
01/10/2025
Filing date
02/14/2025
Lead Plaintiff Deadline
04/15/2025