SAN DIEGO & ALACHUA, Fla.--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP reminds shareholders that purchasers of AxoGen, Inc. (AXGN) filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1933 and Securities Act of 1934 pursuant to the company's November 2017 Secondary Public Offering ("SPO") and/or May 2018 SPO and/or between August 7, 2017 and December 18, 2018. AxoGen develops and markets surgical solutions for peripheral nerves.
View this information on the law firm's Shareholder Rights Blog:
AxoGen Accused of Overstating Active Accounts and Backdating Revenue
According to the complaint, AxoGen issued false and misleading Registration Statements in support of its SPOs in November 2017 and May 2018, that failed to disclose to investors that: (1) the company increased prices to mask lower sales; (2) the company's pricing alienated customers and threatened future growth; (3) the company paid surgeons to generate sales; (4) the company's key metrics were overstated; and (5) the company lacked adequate internal controls to prevent such conduct. On December 18, 2018, Seligman Investments published 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, that AxoGen's "growth is driven by unsustainable, aggressive price increases," and that the payments to physicians relative to revenue creates "elevated risks relating to pay-to-play and anti-kickback laws." On this news, AxoGen stock dropped approximately 22% to close at $21.36 on December 18, 2018.
AxoGen Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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