AxoGen, Inc. (NASDAQ: AXGN) Investor Securities Class Action Lawsuit 01/09/2019

If you purchased shares of AxoGen, Inc. (NASDAQ: AXGN), you have certain options and for certain investors are short and strict deadlines running. Deadline: March 11, 2019. NASDAQ: AXGN investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
AxoGen
Case Name: 
AxoGen Shareholder Class Action Lawsuit 01/09/2019
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: AXGN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/09/2019
Class Period Begin: 
08/07/2017
Class Period End: 
12/18/2018
Court of Filing: 
U.S. District Court for the Middle District of Florida
Deadline To File for Lead: 
03/11/2019
Summary: 

An investor, in shares of AxoGen, Inc. (NASDAQ: AXGN) filed a lawsuit in the U.S. District Court for the Middle District of Florida over alleged violations of Federal Securities Laws by AxoGen, Inc.

Alachua, FL based AxoGen, Inc. develops and markets surgical solutions for peripheral nerve injuries. AxoGen, Inc. reported that its annual Total Revenue rose from over $41.10 million in 2016 to over $60.42 million in 2017 and that its Net Loss declined from $14.41 million in 2016 to $10.44 million in 2017.

Shares of AxoGen, Inc. (NASDAQ: AXGN) grew from $8.05 per share in late 2016 to as high as $56.40 per share in July 2018.

On December 18, 2018, a report was issued raising questions about the accuracy of AxoGen’s descriptions of the Company’s operations and sales.

Shares of AxoGen, Inc. (NASDAQ: AXGN) declined to as low as $14.13 per share on January 9, 2019.

According to the complaint the plaintiff alleges on behalf of persons and entities that purchased or otherwise acquired AxoGen, Inc. (NASDAQ: AXGN) securities pursuant and/or traceable to the Company’s false and/or misleading registration statement and prospectus (collectively, the “November 2017 Registration Statement”) issued in connection with the Company’s November 2017 secondary public offering (“November SPO”), and/or purchased or otherwise acquired AxoGen securities pursuant and/or traceable to 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 purchased or otherwise acquired AxoGen securities between August 7, 2017 and December 18, 2018, , that the defendants violated Federal Securities Laws. More specifically the plaintiff claims that the Defendants failed to disclose that the Company aggressively increased prices to mask lower sales, that the Company’s pricing alienated customers and threatened the Company’s future growth, that ambulatory surgery centers form a significant part of the market for the Company’s products, that such centers were especially sensitive to price increases, that the Company was dependent on a small number of surgeons whom the Company paid to generate sales, that the Company’s consignment model for inventory was reasonably likely to lead to channel stuffing, that the Company offered purchase incentives to sales representatives to encourage channel stuffing, that the Company’s sales representatives were encouraged to backdate revenue to artificially inflate metrics, that the Company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue, that the Company’s key operating metrics, such as number of active accounts, were overstated, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

On January 11, 2019, NASDAQ: AXGN shares closed at $16.24 per share.