Business Wire 11-Jan-2019 7:30 PM
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of those who acquired AxoGen, Inc. ("AxoGen" or the "Company") (NASDAQ: AXGN) securities during the period from August 7, 2017 through December 18, 2018 (the "Class Period"). Investors have until March 11, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that AxoGen failed to disclose that: (i) the Company aggressively increased prices to mask lower sales; (ii) the Company's pricing alienated customers and threatened the Company's future growth; (iii) the Company was dependent on a small number of surgeons whom the Company paid to generate sales; (iv) the Company offered purchase incentives to sales representatives to encourage channel stuffing; (v) the Company's sales representatives were encouraged to backdate revenue to artificially inflate metrics; and (vi) the Company's key operating metrics, such as number of active accounts, were overstated.
Following the publication of a report by Seligman Investments alleging channel stuffing and the overstatement of active accounts, the price of AxoGen shares fell by $6.17, or approximately 22.4%, to close at $21.36 on December 18, 2018.
If you acquired AxoGen securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs' law firm concentrating in securities, antitrust, and whistleblower litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney's website: www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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