NEW YORK, Jan. 11, 2019 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for Middle District of Florida against AxoGen, Inc. ("AxoGen" or the “Company") (NASDAQ: AXGN) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired AxoGen securities pursuant and/or traceable to
- the Company’s registration statement and prospectus (collectively, the “November 2017 Registration Statement”) issued in connection with its November 2017 secondary public offering (“November SPO”); and/or
- 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
- between August 7, 2017 and December 18, 2018, inclusive (the “Class Period”).
Investors who have incurred losses in the shares of AxoGen, Inc . a re urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you have incurred losses in the shares of AxoGen, Inc., you may, no later than March 11, 2019, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in AxoGen, Inc.
The filed Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
- AxoGen aggressively increased prices to mask lower sales;
- AxoGen’s pricing alienated customers and threatened the Company’s future growth;
- ambulatory surgery centers form a significant part of the market for the Company’s products;
- such centers were especially sensitive to price increases;
- the Company was dependent on a small number of surgeons whom the Company paid to generate sales;
- AxoGen’s consignment model for inventory was reasonably likely to lead to channel stuffing;
- the Company offered purchase incentives to sales representatives to encourage channel stuffing;
- the Company’s sales representatives were encouraged to backdate revenue to artificially inflate metrics;
- the Company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue;
- the Company’s key operating metrics, such as number of active accounts, were overstated; and
- consequently, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
On December 18, 2018, Seligman Investments reported that “[a] number of former [AxoGen] employees allege channel stuffing [at AxoGen], given that the company’s consignment model creates potential for abuse, as well as alleging questionable revenue recognition practices.” The article continued to state that “allegations additionally include misleading operating metrics, with one former rep implying that the company’s definition of ‘active accounts’ may overstate the actual number by a factor of ten.”
Following this news, AxoGen stock dropped $6.17 per share, or roughly 22%, to close at $21.36 on December 18, 2018.
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Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com , or visit our website at www.whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP Kevin Cooper, Esq. Gregory Stone, Director of Case and Financial Analysis Email: gstone@whafh.com , kcooper@whafh.com or classmember@whafh.com Tel: (800) 575-0735 or (212) 545-4774
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