SAN FRANCISCO, Aug. 11, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Paragon 28, Inc. (NYSE: FNA) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
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Paragon 28, Inc. (FNA) Investigation:
Paragon 28 Inc. suffered a sharp decline in its share price on August 9 after lowering its revenue forecast, announcing layoffs, and replacing its finance chief. The stock plunged 22%, erasing hundreds of millions of dollars of shareholder value.
The medical device company said it now expects full-year revenue between $249 million and $255 million, down from a previous range of $249 million to $259 million. In an effort to cut costs and preserve cash, Paragon 28 is implementing an operational efficiency strategy that includes laying off approximately 7% of its workforce. The company is also reducing inventory and adjusting executive compensation.
Kristina Wright, who had been serving as interim CFO since April, has been replaced by Chadi Chanine, formerly of Zimmer Biomet Holdings.
The latest developments come as Paragon 28 has revealed accounting irregularities. CFO Stephen Deitsch’s abrupt resignation on April 4, 2023 portended problems with the company’s financial reporting.
On July 30, concerns came to fruition when Paragon 28 announced that its previously reported financial results for 2023 and the first quarter of 2024 were unreliable. The company admitted to material weaknesses in its internal controls and disclosed significant accounting errors. Specifically, Paragon 28 understated its cost of goods sold by 19%, resulting in an overstated operating loss by 22% and net loss by 20%.
The company’s stock has fallen over 56% over the past year, raising concerns about its financial health and prompting prominent shareholder rights firm Hagens Berman to commence an investigation into potential violations of U.S. securities laws.
“We’re looking into any potential connection between Paragon 28’s dismal outlook and past improper accounting,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Paragon 28 and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Paragon 28 investigation, read more »
Whistleblowers: Persons with non-public information regarding Paragon 28 should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FNA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
