Shares of TransMedics Group were down over 11% on January 10, 2025, following the release of an investigative report by Scorpion Capital. The report alleges wrongdoing in TransMedics’ business practices, including fraudulent billing schemes, off-label misuse of its devices, and reliance on kickbacks to drive sales. It also highlights ongoing regulatory scrutiny, with reports of investigations by the DOJ, IRS, and state attorneys general into Medicare fraud linked to organ acquisition costs. Additionally, the report makes claims regarding customer dissatisfaction, with prominent transplant centers discontinuing their use of TransMedics devices and citing concerns over their clinical value.
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