NEW YORK, — 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 firm reminds of the March 11, 2019 lead plaintiff deadline.
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 [email protected], [email protected] 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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