Dentsply Sirona Inc. (NAS:XRAY) said Wednesday it has received a written notification from the Nasdaq exchange warning that it is no longer in compliance with listing rules because it has not yet filed its quarterly 10-Q report with the Securities and Exchange Commission. The maker of dental products and technology said last week the 10-Q was delayed by an internal probe of financial reporting involving former and current executives. The announcement led to the ouster of Moderna Inc.'s (NAS:MRNA) CFO Jorge Gomez after just two days in the job; Gomez came to Moderna from Dentsply where he was CFO since 2019. Dentsply in an SEC filing said its audit and finance committees were looking into allegations of "channel stuffing", a deceptive practice used to inflate sales and earnings by deliberately sending more product to distributors than they can reasonably sell. The practice was alleged to have been used by former members of senior management to achieve exec comp targets in 2021, said Dentsply. The company now has 60 days to cure its issue with the Nasdaq and could be eligible for an extension of up to 180 days. Shares were down 1.9% premarket and have fallen 30% in the year to date, while the S&P 500 (S&P:SPX) has fallen 14%.
May 18, 2022, 8:14 a.m. EDT