The Kahn Swick & Foti law firm launched an investigation into Dentsply Sirona officers and directors for possible breaches of fiduciary duties.
Five things to know:
1. Dentsply Sirona launched an internal investigation into possible securities fraud in March 2022, which led the company to miss the filing date for its first- and second-quarter earnings.
2. The company replaced several key leadership roles during its investigation, including its CEO, CFO and executive vice president, chief accounting officer and senior vice president, and chief commercial officer.
3. The investigation was completed in November, with the company stating it identified "weaknesses in the company's internal control over financial reporting" and determined its financial statements and related disclosures for the months leading up to Sept. 30, 2021, and for the 2021 fiscal year are unreliable because of "certain misstatements contained in those financial statements."
4. Kahn Swick & Foti said its investigation is focused on whether the dental supplier's officers or directors breached their fiduciary duties to the company's shareholders or otherwise violated state or federal laws, according to a Feb. 24 news release.
5. The Bernstein Liebhard law firm also launched an investigation into the dental supplier for possible federal securities law violations in May 2022.
Becker's has contacted Dentsply Sirona for comment and will update this story as more information becomes available.