RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased AxoGen, Inc. (“AxoGen” or the “Company”) (NASDAQ: AXGN) on behalf of purchasers of AxoGen securities: 1) pursuant and/or traceable to the November 2017 SPO; and/or 2) pursuant and/or traceable to the May 2018 SPO; and/or 3) between August 2, 2017 and December 18, 2018, inclusive (the “Class Period”).
AxoGen shareholders may, no later than March 11, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of AxoGen and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint 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.
If you are a member of the class, you may, no later than March 11, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.