Organon Shareholder Sues Board After Quarterly Dividend Plunge

Organon & Co. top brass misrepresented its financial condition and strategy before the company said it slashed quarterly dividends about 70%, prompting a record stock selloff, a shareholder lawsuit said.

Share prices plummeted almost 27% May 1, the day the women’s health company announced the lowered shareholder payment 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’s leadership had ...