An investigation on behalf of current long term investors in AxoGen, Inc. (NASDAQ: AXGN) shares over possible breaches of fiduciary duty by certain officers and directors was announced.
San Diego, CA -- (SBWIRE) -- 04/30/2019 -- Certain directors of AxoGen, Inc. are under investigation over potential breaches of fiduciary duties.
Investors who are current long term investors in AxoGen, Inc. (NASDAQ: AXGN) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for investors in NASDAQ: AXGN stocks follows a lawsuit filed against AxoGen, Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ: AXGN stocks, concerns whether certain AxoGen directors are liable in connection with the allegations made in that lawsuit.
The plaintiff alleges on behalf of persons and entities that purchased or otherwise acquired AxoGen, Inc. (NASDAQ: AXGN) securities pursuant and/or traceable to the Company's false and/or misleading registration statement and prospectus (collectively, the "November 2017 Registration Statement") issued in connection with the Company's November 2017 secondary public offering ("November SPO"), and/or purchased or otherwise acquired AxoGen securities pursuant and/or traceable to the Company's false and/or misleading registration statement and prospectus (collectively, the "May 2018 Registration Statement") issued in connection with the Company's May 2018 secondary public offering ("May SPO") and/or purchased or otherwise acquired AxoGen securities between August 7, 2017 and December 18, 2018, , that the defendants violated Federal Securities Laws. More specifically the plaintiff claims that the Defendants failed to disclose that the Company aggressively increased prices to mask lower sales, that the Company's pricing alienated customers and threatened the Company's future growth, that ambulatory surgery centers form a significant part of the market for the Company's products, that such centers were especially sensitive to price increases, that the Company was dependent on a small number of surgeons whom the Company paid to generate sales, that the Company's consignment model for inventory was reasonably likely to lead to channel stuffing, that the Company offered purchase incentives to sales representatives to encourage channel stuffing, that the Company's sales representatives were encouraged to backdate revenue to artificially inflate metrics, that the Company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue, that the Company's key operating metrics, such as number of active accounts, were overstated, and 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.
Those who purchased shares of AxoGen, Inc. (NASDAQ: AXGN) have certain options and should contact the Shareholders Foundation.
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