Bragar Eagel & Squire, P.C. Announces That a Class Action Lawsuit Has Been Filed Against AxoGen, Inc. (AXGN) and Encourages AXGN Investors to Contact the Firm
NEW YORK, Jan. 09, 2019 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of all persons or entities who purchased or otherwise acquired AxoGen, Inc. (NASDAQ: AXGN) securities pursuant to and/or traceable to AXGN’s Secondary Public Offering (“SPO”) on or about November 16, 2017. Investors have until March 11, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The complaint alleges that throughout the class period defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants failed to disclose: (1) that the company aggressively increased prices to mask lower sales; (2) that the company’s pricing alienated customers and threatened the company’s future growth; (3) that ambulatory surgery centers form a significant part of the market for the company’s products; (4) that such centers were especially sensitive to price increases; (5) that the company was dependent on a small number of surgeons whom the company paid to generate sales; (6) that the company’s consignment model for inventory was reasonably likely to lead to channel stuffing; (7) that the company offered purchase incentives to sales representatives to encourage channel stuffing; (8) that the company’s sales representatives were encouraged to backdate revenue to artificially inflate metrics; (9) that the company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue; (10) that the company’s key operating metrics, such as number of active accounts, were overstated; and (11) that, as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you purchased AxoGen securities pursuant to and/or traceable to the SPO and suffered a loss, have information, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the AxoGen lawsuit, please go to https://bespc.com/axgn/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.