Scorpion Capital shorts TransMedics, shares down

Investing.com -- Short seller Scorpion Capital disclosed a short position in TransMedics Group Inc (NASDAQ: TMDX) accusing the organ transplant tech. company of fraudulent practices, including kickbacks, billing fraud, and unreported device failures.

Scorpion alleged the company operates a "mafia-style" scheme involving off-label device misuse and customer attrition, as it set TransMedics target price of $0.

“Investors sense something is afoot, after a spate of recent bad news : a Q3 miss and startling drop in sequential revenue; the CFO fired a month later, after a 10-year tenure; a disastrous Dec investor day and 2025 guide – back half weighted, naturally,” report said.

Shares of TransMedics fell 13% at $63 before the opening bell after the report.

You May Also Be Interested In

• Exclusive: SB Energy Nasdaq IPO moving forward as planned
• Fed’s Jefferson says discount window upgrades aid stability
• Trump says he and Zelenskiy working on Ukraine war solution