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Bragar Eagel & Squire, P.C. Is Investigating Paragon 28, LegalZoom, and Elastic and Encourages Investors to Contact the Firm
Globe Newswire 25-Sep-2024 9:00 PM
NEW YORK, Sept. 25, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Paragon 28, Inc. (NYSE:FNA), LegalZoom.com, Inc. (NASDAQ:LZ), and Elastic N.V. (NYSE:ESTC). Our investigations concern whether these companies have violated the federal securities laws and/or engaged in other unlawful business practices. Additional information about each case can be found at the link provided.
On July 30, 2024, after the market closed, Paragon 28 filed a current report on Form 8-K with the SEC. It stated that "On July 30, 2024, the Audit Committee of the Board of Directors (the "Audit Committee") of Paragon 28, Inc. (the "Company"), in consultation with management, concluded that the Company's previously issued audited consolidated financial statements for the fiscal year ended December 31, 2023, contained within the Annual Report on Form 10-K for that year (and the associated audit report of the Company's independent registered accounting firm) and the unaudited condensed consolidated financial statements contained within the Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, September 30, 2023, and March 31, 2024 should no longer be relied upon due to errors in such financial statements, and therefore a restatement of these prior financial statements is required. Accordingly, the Company intends to restate the aforementioned financial statements by amending its Annual Report on Form 10-K for the year ended December 31, 2023 and its quarterly report on Form 10-Q for the quarter ended March 31, 2024 (the "Restated Filings") as soon as reasonably practicable."
On this news, the price of Paragon 28 stock fell by 13.7% on July 31, 2024.
On July 9, 2024, LegalZoom issued a press release announcing that "[t]he Company is reducing its revenue expectation for the full year to a range of $675 million to $685 million and its free cash flow expectation for the full year to a range of $75 million to $85 million." In the same press release, the Company announced that "current Chief Executive Officer Dan Wernikoff will be departing the Company, including resigning from the Board."
On this news, multiple analysts downgraded LegalZoom, and the Company's stock price fell $1.99 per share, or 25.35%, to close at $5.86 on July 10, 2024.
On August 30, 2024, Elastic announced that it was reducing its revenue forecast for the year, a move that prompted a flurry of downgrades from market analysts. A major concern was the disruption within the sales organization, which appeared during a period of strategic realignment aimed at improving sales efficiency and effectiveness. Moreover, the company has been facing a decrease in demand across the regions of Europe, the Middle East, and Africa, further complicating its financial outlook.
Following this news, Elastic's stock was trading significantly lower in pre-market trading on August 30, 2024.
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
