Company: AxoGen, Inc.
Class Period: August 7, 2017 — December 18, 2018
Court: U.S. District Court – Middle District of Florida
Deadline: March 11, 2019
Kaskela Law LLC announces that a shareholder class action lawsuit has been filed against AxoGen, Inc. (“AxoGen” or the “Company”) (NASDAQ: AXGN) on behalf of investors who purchased shares of the Company’s stock between August 7, 2017 and December 18, 2018, inclusive (the “Class Period”).
Among other things, the shareholder class action lawsuit alleges that AxoGen made materially false and misleading statements to investors during the Class Period and/or failed to disclose that: (i) the Company aggressively increased prices to mask lower sales; (ii) the Company’s pricing alienated customers and threatened the Company’s future growth; (iii) the Company was dependent on a small number of surgeons whom the Company paid to generate sales; (iv) the Company offered purchase incentives to sales representatives to encourage channel stuffing; (v) the Company’s sales representatives were encouraged to backdate revenue to artificially inflate metrics; and (vi) the Company’s key operating metrics, such as number of active accounts, were overstated.
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 Company’s number of active accounts may be overstated by a factor of ten, that the Company’s “growth [i]s 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.”
Following this news, shares of the Company’s stock fell $6.17 per share, or nearly 22%, to close at $21.36 per share on December 18, 2018, on unusually high trading volume. Over the following three trading days, shares of the Company’s stock declined an additional $4.27 per share.
IMPORTANT DEADLINE: Investors who purchased AxoGen’s stock during the Class Period may, no later than March 11, 2019, seek to be appointed as a lead plaintiff representative of the class through Kaskela Law LLC, or other counsel, or may choose to do nothing and remain an absent class member.
Investors who purchased AxoGen’s stock during the Class Period are encouraged to contact Kaskela Law LLC toll-free at (888) 715 – 1740, or complete the information form on this page, to learn how to participate in this action.