Globe Newswire 11-Jan-2019 8:00 AM
NEW YORK, Jan. 11, 2019 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of AxoGen, Inc. ("AxoGen" or the "Company") (NASDAQ:AXGN): (1) 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 (2) 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 (3) on the open market between August 7, 2017 and December 18, 2018, both dates inclusive (the "Class Period"). The lawsuit seeks to recover AxoGen shareholders' investment losses.
If you purchased AxoGen securities, and/or would like to discuss your legal rights and options, please visit AxoGen Shareholder Class Action Lawsuit or contact Daniel Sadeh toll free at (877) 779-1414 or email@example.com.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company aggressively increased prices to mask lower sales; (2) the Company's pricing alienated customers and threatened the Company's future growth; (3) ambulatory surgery centers form a significant part of the market for the Company's products; (4) such centers were especially sensitive to price increases; (5) the Company was dependent on a small number of surgeons whom the Company paid to generate sales; (6) the Company's consignment model for inventory was reasonably likely to lead to channel stuffing; (7) the Company offered purchase incentives to sales representatives to encourage channel stuffing; (8) the Company's sales representatives were encouraged to backdate revenue to artificially inflate metrics; (9) the Company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue; (10) the Company's key operating metrics, such as number of active accounts, were overstated; and (11) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
On December 18, 2018, Seligman Investments issued a report stating, among other things, that "[a] number of former [AxoGen] employees allege channel stuffing [at AxoGen], given that the company's consignment model creates potential for abuse, as well as alleging questionable revenue recognition practices." Further, the report states that "allegations additionally include misleading operating metrics, with one former rep implying that the company's definition of ‘active accounts' may overstate the actual number by a factor of ten."
On this news, AxoGen's stock fell $6.17 per share or approximately 22% to close at $21.36 per share on December 18, 2018, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than March 11, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn't require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased AxoGen securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/axogen-inc-axgn-lawsuit-class-action-fraud-stock-102/ or contact Daniel Sadeh toll free at (877) 779-1414 or firstname.lastname@example.org.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and listed in The Legal 500 for ten consecutive years.
ATTORNEY ADVERTISING. © 2018 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this advertisement in the State of Connecticut is Michael S. Bigin. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
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