PRNewswire 11-Jan-2019 1:24 PM
NEW YORK, Jan. 11, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of AxoGen, Inc. ("AxoGen" or the "Company") (NASDAQ:AXGN), a company that purports to provide surgical solutions for physical damage or discontinuity to peripheral nerves. AxoGen's products include nerve allografts and extracellular matrices. Investors who purchased AxoGen securities between August 7, 2017 and December 18, 2018, inclusive (the "Class Period") may be affected.
A complaint has been filed in the United States District Court for the Middle District of Florida against AxoGen, certain executives and directors of the Company, and the underwriters of the Company's November 2017 and May 2018 secondary public offerings on behalf of investors of AxoGen securities during the Class Period.
According to the complaint, on December 18, 2018 Seligman Investments published a report that, among other things, represents that "[f]ormer sales reps state either indirectly or bluntly that the Company is engaged in channel stuffing" and that employees were encouraged to engage in questionable revenue recognition practices, such as backdating revenue. Following the publication of the Seligman Investment report, AxoGen stock fell $6.17 per share, more than 22%, to close at $21.36 per share on December 18, 2018.
The complaint alleges that throughout the Class Period the defendants made materially false and misleading statements and/or failed to disclose that (1) AxoGen aggressively increased prices to mask lower sales, (2) AxoGen's pricing alienated customers and threatened the Company's future growth, (3) that ambulatory surgery centers form a significant part of 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 are a member of the proposed Class, you may move the court no later than March 11, 2019 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP
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