Why TransMedics Group Stock Is Tanking Today
Shares of TransMedics Group (NASDAQ: TMDX) were tanking 14.3% lower as of 10:46 a.m. ET on Friday. The big sell-off came after activist short seller Scorpion Capital released a scathing report about TransMedics.
Scorpion stated in its report, "TransMedics is the most extreme and grotesque healthcare fraud we have encountered, not only for its scale, but because it is predicated on the exploitation of the most vulnerable patients -- the terminally ill, desperate for an organ." The short seller alleged that TransMedics overcharges for its services, bills fraudulently, "pushes unsafe, damaged organs rejected by reputable centers," and uses unlicensed healthcare professionals, among other accusations.
Any allegations as serious as the ones Scorpion is making against TransMedics should be taken seriously. However, investors shouldn't make a rash decision about selling shares until more information is available. TransMedics Group's management had not responded publicly to Scorpion Capital's report at the time of this writing.
Source Fool.com
