NEW YORK, Jan. 14, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against AxoGen, Inc. (“AxoGen” or the “Company”) (Nasdaq: AXGN) in the United States District Court for the Middle District of Florida on behalf of those who purchased or acquired the securities of AxoGen: (1) 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 (2) 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 (3) on the open market between August 7, 2017 and December 18, 2018.
The Complaint alleges that (i) the Company aggressively increased prices to mask lower sales; (ii) the Company’s pricing alienated customers and threatened the Company’s future growth; (iii) ambulatory surgery centers form a significant part of the market for the Company’s products; (iv) such centers were especially sensitive to price increases; (v) the Company was dependent on a small number of surgeons whom the Company paid to generate sales; (vi) the Company’s consignment model for inventory was reasonably likely to lead to channel stuffing; (vii) the Company offered purchase incentives to sales representatives to encourage channel stuffing; (viii) the Company’s sales representatives were encouraged to backdate revenue to artificially inflate metrics; (ix) the Company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue; (x) the Company’s key operating metrics, such as number of active accounts, were overstated; and (xi) 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. When the true details entered the market, the lawsuit claims that investors suffered damages.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the March 11, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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