NEW YORK, Feb. 21, 2019 (GLOBE NEWSWIRE) -- Zhang Investor Law announces the filing of a class action lawsuit on behalf of shareholders who bought shares of AxoGen, Inc. (NASDAQ: AXGN): (1) pursuant and/or traceable to the false and/or misleading registration statement and prospectus issued in connection with AxoGen’s November 2017 secondary public offering; and/or (2) purchased or otherwise acquired AxoGen securities pursuant and/or traceable to AxoGen’s false and/or misleading registration statement and prospectus issued in connection with AxoGen’s May 2018 secondary public offering; and/or (3) purchased or otherwise acquired AxoGen securities between August 7, 2017 and December 18, 2018, inclusive (the “Class Period”). The lawsuit seeks to recover damages for AxoGen investors under the federal securities laws.
If you wish to serve as lead plaintiff, you must move the Court no later than March 11, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, http://zhanginvestorlaw.com/join-action-form/?slug=axogen-inc&id=1731 or to discuss your rights or interests regarding this class action, please contact Sophie Zhang, Esq. or Spencer Lee toll-free at 800-991-3756 or email info@zhanginvestorlaw.com, slee@zhanginvestorlaw.com for information on the class action.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) AxoGen aggressively increased prices to mask lower sales; (2) AxoGen’s pricing alienated customers and 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, defendants’ positive statements about AxoGen’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
A class has not been certified. You may retain counsel of your choice. You may take no action at this time and be an absent class member. Your ability to obtain a recovery is not dependent upon being a lead plaintiff.
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