SAN DIEGO & ALACHUA, Fla.--(BUSINESS WIRE)--$AXGN #classaction--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of AxoGen, Inc. (NYSE: AXGN) filed a derivative complaint against the company's officers and directors for breaches of fiduciary duty beginning November 16, 2017. AxoGen provides surgical intervention for physical damage for peripheral nerve impairments.
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AxoGen, Inc. (AXGN) Accused of Grossly Overcompensating its Directors
According to the derivative complaint, between November 2017 and October 2018, AxoGen touted healthy revenue, improved control over previously reported material weaknesses, and an increase in active accounts. AxoGen conducted two public offerings during this time, based in part on these representations. On December 18, 2018, Seligman Investments issued a scathing report revealing that former employees alleged channel stuffing and backdating of revenue, that the number of active accounts may be overstated, that AxoGen's growth was "driven by unsustainable, aggressive price increases," and that payments to physicians relative to revenue creates "elevated risks relating to pay-to-play and anti-kickback laws." On this news, AxoGen's share price declined almost 31% over the next 3 trading days and has yet to recover.
AxoGen, Inc. (AXGN) Shareholders Have Legal Options
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Click Here to receive free alerts from Stock Watch when companies engage in wrongdoing.
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