Scott+Scott Attorneys at Law LLP Reminds Investors of Securities Class Action Against Axogen, Inc. and March 11 Lead Plaintiff Deadline
Business Wire 7-Mar-2019 11:00 AM
Scott+Scott
Attorneys at Law LLP ("Scott+Scott"), a national shareholder and
consumer rights litigation firm, reminds investors that a class action
lawsuit has been filed against Axogen, Inc. ("Axogen" or the "Company")
(NASDAQ:AXGN) and other defendants, related to alleged violations of
federal securities laws. If you purchased Axogen common stock in
connection with the Company's November 2017 Initial Public Offering
("IPO"), or between August 7, 2017 and December 18, 2018, you are
encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more
information.
The lawsuit alleges that 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: (1) Axogen aggressively increased prices to mask lower
sales; (2) Axogen'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) Axogen was
dependent on a small number of surgeons whom the Company paid to
generate sales; (6) Axogen's consignment model for inventory was
reasonably likely to lead to channel stuffing; (7) Axogen offered
purchase incentives to sales representatives to encourage channel
stuffing; (8) Axogen's sales representatives were encouraged to backdate
revenue to artificially inflate metrics; (9) Axogen lacked adequate
internal controls to prevent such channel stuffing and backdating of
revenue; and (10) Axogen's key operating metrics, such as number of
active accounts, were overstated.
On December 18, 2018, Seligman Investments issued a report stating,
among other things, that former employees allege channel stuffing and
backdating of revenue, that the number of active accounts may be
overstated by a factor of ten, and that aggressive annual price
increases had driven the Company's revenue growth.
On this news, Axogen's share price fell $6.17 per share – nearly 22% –
to close at $21.36 per share on December 18.
What You Can Do
If you purchased Axogen stock in the IPO or between August 7, 2017
and December 18, 2018, inclusive, or if you have questions about
this notice or your legal rights, please contact attorney Rhiana Swartz
at (844) 818-6980, or at rswartz@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities,
antitrust, and employee retirement plan actions throughout the United
States. The firm represents pension funds, foundations, individuals, and
other entities worldwide with offices in New York, London, Connecticut,
California, and Ohio.
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