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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.
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