TRANSMEDICS GROUP INC

Scorpion Capital published a detailed investigative report in January 2025 alleging that TransMedics conceals adverse data on rejected organs processed through its National OCS Program (NOP) and misrepresents clinical outcomes to investors and regulators. The report, based on over 30 interviews with former employees, surgeons, and organ procurement organizations, alleges TransMedics engages in kickbacks to transplant centers in exchange for using its Organ Care System, steers damaged organs rejected by reputable centers to favored users, and conceals organ quality information to protect device and aircraft fees. Multiple securities class action lawsuits have been filed. A Senate hearing examined organ transplant safety concerns related to TransMedics' practices. The stock dropped 13% on the report's release.

In March 2025, a securities class action lawsuit (Jewik v. TransMedics Group, Inc., Case No. 25-cv-10385, D. Mass.) was filed alleging that TransMedics used kickbacks, fraudulent overbilling, and coercive tactics to fuel growth in its organ procurement business. The complaint, brought under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, alleges TransMedics paid kickbacks to medical providers to use its Organ Care System products, operated an organ trafficking scheme by providing patients with organs rejected by reputable physicians via doctors allegedly paid by TransMedics, engaged in widespread billing fraud, and promoted off-label use. The allegations were initially detailed in a January 2025 short-seller report by Scorpion Capital, which triggered a stock decline exceeding 30%. Multiple law firms including Hagens Berman are pursuing claims on behalf of investors who purchased securities between February 2023 and January 2025.

Scorpion Capital report (January 2025) alleges TransMedics concealed data on rejected organs and misrepresented clinical outcomes. Pattern of misleading investors and regulators about organ viability rates.

TransMedics develops the Organ Care System for transplant organ preservation. The technology was developed and validated using porcine (pig) heart, lung, and kidney models. Its 10-K explicitly acknowledges reliance on animal studies in the product's engineering and regulatory pathway.