Scott+Scott Attorneys at Law LLP (Scott+Scott), a national shareholder and consumer rights litigation firm, reminds investors that a class action lawsuit has been filed against Axogen, Inc. (Axogen or the Company) (NASDAQ: AXGN) and other defendants, related to alleged violations of federal securities laws. If you purchased Axogen common stock in connection with the Companys November 2017 Initial Public Offering (IPO), or between August 7, 2017 and December 18, 2018, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.
The lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Companys business, operations, and prospects; specifically: (1) Axogen aggressively increased prices to mask lower sales; (2) Axogens pricing alienated customers and threatened the Companys future growth; (3) ambulatory surgery centers form a significant part of the market for the Companys 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) Axogens 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) Axogens 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) Axogens 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 Companys revenue growth.
On this news, Axogens share price fell $6.17 per share “ nearly 22% “ to close at $21.36 per share on December 18.
What You Can Do
If you purchased Axogen stock in the IPO or between August 7, 2017 and December 18, 2018, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980, or at [email protected].
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.