Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of Paragon 28, Inc. (FNA) Investors

Business Wire 2-Oct-2024 5:05 PM

Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Paragon 28, Inc. ("Paragon" or the "Company") (NYSE:FNA) common stock between May 5, 2023 and August 8, 2024, inclusive (the "Class Period"). Paragon investors have until November 29, 2024 to file a lead plaintiff motion.

If you suffered a loss on your Paragon investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Paragon-28-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On July 30, 2024, after market hours, Paragon disclosed that the Company's previously issued financial statements from 2023 and 2024 should no longer be relied upon "due to errors in such financial statements" related to "accounting" and would therefore require restatements. Additionally, the Company reported that it had identified "one or more material weaknesses in its internal control over financial reporting."

On this news, Paragon's stock price fell $1.24, or 13.7%, to close at $7.79 per share on July 31, 2024, thereby injuring investors.

Then, on August 8, 2024, after market hours, Paragon released its amended annual report for 2023 and the first quarter 2024 report, providing restated financial figures, revealing understated cost of goods sold and overstated net inventories.

On this news, Paragon's stock price fell $1.67, or 20.1%, to close at $6.64 per share on August 9, 2024, thereby injuring investors further.

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 to investors that: (1) Paragon 28's financial statements were misstated; (2) Paragon 28 lacked adequate internal controls and at times understated the extent of the issues with its internal controls; and (3) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Paragon common stock during the Class Period, you may move the Court no later than November 29, 2024 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 Charles Linehan, 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 shareholders@glancylaw.com, 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.

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