Glancy Prongay & Murray LLP Files a Securities Class Action on Behalf of AxoGen, Inc. Investors
LOS ANGELES--(BUSINESS WIRE)--Jan 9, 2019--Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the United States District Court for the Middle District of Florida, captioned Einhorn v. AxoGen, Inc. et al., (Case No. 8:19-cv-00069), on behalf of persons and entities that: a) purchased or otherwise acquired AxoGen, Inc. (NASDAQ: AXGN ) (“AxoGen” or the “Company”) securities pursuant and/or traceable to the Company’s false and/or misleading registration statement and prospectus (collectively, the “November 2017 Registration Statement”) issued in connection with the Company’s November 2017 secondary public offering (“November SPO”); and/or b) purchased or otherwise acquired AxoGen securities pursuant and/or traceable to the Company’s false and/or misleading registration statement and prospectus (collectively, the “May 2018 Registration Statement”) issued in connection with the Company’s May 2018 secondary public offering (“May SPO”); and/or c) purchased or otherwise acquired AxoGen securities between August 7, 2017 and December 18, 2018, inclusive (the “Class Period”). Plaintiff pursues claims under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”) and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, against the Company and certain of its officers/directors.
Investors are hereby notified that they have 60 days from the date of this notice to move the Court to serve as lead plaintiff in this action.
If you are a shareholder who suffered a loss, click here to participate.
On December 18, 2018, Seligman Investments issued a report stating, among other things, that former employees allege channel stuffing and backdating of revenue, that the number of active accounts may be overstated by a factor of ten, and that aggressive annual price increases had driven the Company’s revenue growth.
On this news, the Company’s share price fell $6.17 per share, or nearly 22%, to close at $21.36 per share on December 18, 2018, on unusually high trading volume.
The complaint filed in this class action 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.
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If you purchased securities in the November SPO or May SPO or during the Class Period, you may move the Court no later than 60 days from the date of this notice to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190109005907/en/
CONTACT: Glancy Prongay and Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Glancy Prongay & Murray LLP
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PUB: 01/09/2019 07:04 PM/DISC: 01/09/2019 07:04 PM