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AxoGen, Inc. (AXGN)

NASDAQ:AXGN

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In AxoGen, Inc. To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in AxoGen, Inc. (“AxoGen” or the “Company”) (NASDAQ:AXGN) of the March 11, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you invested in AxoGen stock or options: a) pursuant and/or traceable to the Company’s November 2017 secondary public offering (“2017 SPO”); and/or b) pursuant and/or traceable to the Company’s May 2018 secondary public offering (“2018 SPO”); and/or c) between August 7, 2017 and December 18, 2018 and would like to discuss your legal rights, please fill out the form below.  There is no cost or obligation to you. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com. 

The lawsuit has been filed in the U.S. District Court for the Middle District of Florida on behalf of all those who purchased AxoGen securities: a) pursuant and/or traceable to the Company’s November 2017 SPO; and/or b) pursuant and/or traceable to the Company’s May 2018 SPO; and/or c) between August 7, 2017 and December 18, 2018 (the “Class Period”). The case, Einhorn v. AxoGen, Inc. et al, No. 19-cv-00069  was filed on January 9, 2019, and has been assigned to Elizabeth A. Kovachevich.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose: (1) that the Company aggressively increased prices to mask lower sales; (2) that the Company’s pricing alienated customers and threatened the Company’s future growth; (3) that ambulatory surgery centers form a significant part of the market for 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. 

Specifically, on December 18, 2018, Seligman Investments published a report stating, among other things, that AxoGen former employees alleged channel stuffing and backdating of revenue, that the number of active accounts may be overstated by a factor of ten, that “new customer acquisition is falling,” that its “growth has driven by unsustainable, aggressive price increases,” that the payments to physicians relative to revenue creates “elevated risks relating to pay-to-play and anti-kickback laws.”

On this news, the Company's stock price fell from $27.53 per share on December 17, 2018 to $21.36 per share on December 18, 2018—a $6.17 or 22.42% drop.

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  • Case:
    AxoGen, Inc. (AXGN)
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Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 01/22/2019

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