Bausch + Lomb Faces Investor Lawsuit: A Deep Dive into Pomerantz’s Investigation and Its Implications for Shareholders

In March 2025, Bausch + Lomb Corporation (NYSE: BLCO) faced a critical turning point when it voluntarily recalled its enVista intraocular lenses due to reports of toxic anterior segment syndrome (TASS), a severe complication during cataract surgery. This event, coupled with subsequent financial struggles, has now led to a formal securities fraud investigation by Pomerantz LLP, a law firm with a history of high-profile class action victories. For investors, this raises urgent questions about corporate accountability, financial transparency, and the risks of holding BLCO stock.

The Timeline of Crisis and Legal Action

The investigation into Bausch + Lomb is rooted in a series of events stretching back to April 2024, when Pomerantz was named Co-Lead Counsel in a shareholder lawsuit against Bausch Health Companies, Inc. (BLCO’s parent company). The suit alleged that Bausch Health misled investors about its financial stability ahead of spinning off Bausch + Lomb as a standalone entity.

March 27, 2025: The Recall Triggers a Market Shock
- Bausch + Lomb announced the recall of enVista lenses due to TASS risks, a move that immediately sent its stock plunging 9.83%—falling from $15.67 to $14.13 by March 28, 2025.
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April 30, 2025: Financial Fallout and Lowered Guidance
- The company reported a Q1 2025 adjusted net loss of $54 million, compared to an $24 million net income in the same period of 2024.
- Full-year revenue growth guidance was slashed to 4.5%–6.5%, down from an earlier forecast of 5.5%–7.5%. The recall’s financial impact and operational challenges were cited as primary causes.
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May 6, 2025: Pomerantz Launches Formal Investigation
The law firm is now probing whether Bausch + Lomb executives misled investors about:
1. The risks of the enVista platform prior to the recall.
2. The full financial implications of the recall and operational failures.
3. Its ability to maintain profitability post-spinoff.

Legal Context: Pomerantz’s Track Record and Strategy

Pomerantz LLP has a proven record in securities litigation, including a $47 million settlement with Novavax (2024) over misleading vaccine data and a $97 million settlement with Perrigo (2024) for financial misstatements. Its focus on securities fraud and breaches of fiduciary duty aligns with the allegations against Bausch + Lomb.

The firm’s dual role—previously as Co-Lead Counsel in the 2024 spin-off case—suggests continuity in its scrutiny of Bausch-related entities. Investors who purchased BLCO shares between April 2024 and May 2025 may qualify to join the class action, which seeks to recover losses from alleged corporate misstatements.

Financial Implications for Investors

The stock’s trajectory since the recall underscores the risks for shareholders:
- March 27–28, 2025: $1.54 drop (9.83%) to $14.13.
- April 30, 2025: $2.16 drop (15.74%) to $11.56.
- By May 6, 2025, the stock had lost $4.11 (26.2%) from its pre-recall price of $15.67.

The lowered growth outlook further signals long-term operational challenges. A 4.5%–6.5% growth rate—down from the original 5.5%–7.5%—reflects reduced confidence in the company’s ability to recover from the recall’s aftermath.

Conclusion: Risks and Opportunities for Investors

The Pomerantz investigation paints a stark picture of Bausch + Lomb’s governance and transparency. Key takeaways for investors include:
1. Legal Risk: The firm’s history of successful settlements suggests a credible case against BLCO, though outcomes are not guaranteed.
2. Financial Fragility: The stock’s steep decline and revised guidance indicate a weakened financial position, with potential for further losses if the recall’s impact persists.
3. Class Action Eligibility: Investors who held BLCO shares during the relevant period should consult legal counsel promptly to preserve their rights.

For shareholders, the path forward is fraught with uncertainty. While Pomerantz’s involvement may lead to compensation for past losses, the company’s ability to rebound hinges on resolving the recall’s fallout, improving transparency, and restoring investor trust. Until then, BLCO remains a high-risk holding, particularly for those who bought in during the spin-off or post-recall volatility.

In an era where corporate accountability is increasingly scrutinized, Bausch + Lomb’s case serves as a cautionary tale: missteps in product safety and financial reporting can trigger cascading legal and financial consequences for years to come.