A lawsuit was filed on behalf of investors in AxoGen, Inc. (NASDAQ: AXGN) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 02/05/2019 -- An investor, who purchased shares of AxoGen, Inc. (NASDAQ: AXGN), filed a lawsuit over alleged violations of Federal Securities Laws by AxoGen, Inc.
Investors who purchased shares of AxoGen, Inc. (NASDAQ: AXGN) have certain options and for certain investors are short and strict deadlines running. Deadline: March 11, 2019. NASDAQ: AXGN investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Alachua, FL based AxoGen, Inc. develops and markets surgical solutions for peripheral nerve injuries. On December 18, 2018, a report was issued raising questions about the accuracy of AxoGen's descriptions of the Company's operations and sales.
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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