RADNOR, Pa., Feb. 12, 2019 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP reminds AxoGen, Inc. (Nasdaq: AXGN) (“AxoGen”) investors that a securities fraud class action lawsuit has been filed in the United States District Court for the Middle District of Florida against AxoGen on behalf of purchasers of AxoGen securities: 1) pursuant and/or traceable to the November 2017 SPO; and/or 2) pursuant and/or traceable to the May 2018 SPO; and/or 3) between August 2, 2017 and December 18, 2018 , inclusive (the “Class Period”).
Important Deadline Reminder: Investors who purchased AxoGen securities during the Class Period may, no later than March 11, 2019 , seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please visit: www.ktmc.com/axogen-securities-class-action .
According to the complaint, AxoGen provides surgical solutions for physical damage or discontinuity to peripheral nerves. Its products include nerve allografts and extracellular matrices. The Class Period commences on August 2, 2017, when AxoGen filed its quarterly report on a Form 10-Q for the period ended June 30, 2017.
According to the complaint, on December 18, 2018, Seligman Investments published a report stating, among other things, that: former employees allege channel stuffing and backdating of revenue; the number of active accounts may be overstated by a factor of ten; AxoGen’s “growth [is] driven by unsustainable, aggressive price increases;” and the payments to physicians relative to revenue creates “elevated risks relating to pay-to-play and anti-kickback laws.” Following this news, AxoGen’s share price fell $6.17 per share, or nearly 22%, to close at $21.36 per share on December 18, 2018. The share price continued to decline over the course of the next three trading sessions, dropping $1.53 on December 19, 2018, $1.94 on December 20, 2018, and $0.80 on December 21, 2018, to close at $17.09 per share on December 21, 2018. The total decline over the course of the three trading sessions was $4.27, or nearly 20%.
The complaint alleges that the statements at issue were false and misleading and omitted to state material adverse facts, and that throughout the Class Period, the defendants failed to disclose to investors that: (1) AxoGen aggressively increased prices to mask lower sales; (2) AxoGen’s pricing alienated customers and threatened AxoGen’s future growth; (3) ambulatory surgery centers form a significant part of the market for AxoGen’s products; (4) such centers were especially sensitive to price increases; (5) AxoGen was dependent on a small number of surgeons whom AxoGen paid to generate sales; (6) AxoGen’s 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) AxoGen’s 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; (10) AxoGen’s key operating metrics, such as number of active accounts, were overstated; and (11) as a result of the foregoing, the defendants’ positive statements about AxoGen’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
If you wish to discuss this securities fraud class action lawsuit or have any questions concerning this notice or your rights or interests with respect to this litigation, please contact Kessler Topaz Meltzer & Check (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299–7706 or (610) 667–7706, or via e-mail at info@ktmc.com .
AxoGen investors may, no later than March 11, 2019 , seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com .
CONTACT:
Kessler Topaz Meltzer & Check, LLP James Maro, Jr., Esq. Adrienne Bell, Esq. 280 King of Prussia Road Radnor, PA 19087 (888) 299-7706 (610) 667-7706 info@ktmc.com
