AxoGen, Inc. Securities Fraud Class Action
Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired AxoGen, Inc. (“AxoGen”) (NASDAQ: AXGN) securities between August 7, 2017 and December 18, 2018, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the company aggressively increased prices to mask lower sales; (2) AxoGen’s pricing alienated customers and threatened the company’s future growth; (3) ambulatory surgery centers form a significant part of the market for the company’s products; (4) such centers were especially sensitive to price increases; (5) the company was dependent on a small number of surgeons whom the company paid to generate sales; (6) AxoGen’s consignment model for inventory was reasonably likely to lead to channel stuffing; (7) the company 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) the company lacked adequate internal controls to prevent such channel stuffing and backdating of revenue; (10) the company’s key operating metrics, such as number of active accounts, were overstated; and (11) 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 at all relevant times.
Current Status of Case:
On March 19, 2021, the Court granted the Defendants’ Motion to Dismiss the Amended Complaint. This action has concluded.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at [email protected]. If you would like additional information about the suit, please click on the link “Submit Your Information” above and fill out the form as promptly as possible.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs’ Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.