Drugmaker Organon Investor Sues After Quarterly Dividend Cut (1)

Organon & Co. misled investors about prioritizing shareholder payments before announcing it slashed quarterly dividends 70% before a record selloff, a proposed class action said.

Share prices plummeted almost 27% May 1, the day the women’s health company announced the cut to focus on debt reduction after an acquisition, a stockholder’s complaint told the US District Court for the District of New Jersey. It was the stock’s biggest one-day drop since Organon spun off from Merck & Co. Inc. in 2021, according to data compiled by Bloomberg.

Before the announcement, Organon and two top executives had emphasized prioritizing its capital ...