NEW YORK, NY / ACCESSWIRE / September 21, 2024 / Pomerantz LLP is investigating claims on behalf of investors of Paragon 28, Inc. ("Paragon 28" or the "Company") (NYSE:FNA). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Paragon 28 and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On July 30, 2024, Paragon 28 disclosed 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%.
On this news, Paragon 28's stock price fell $1.24 per share, or 13.73%, to close at $7.79 per share on July 31, 2024.
Then, on August 8, 2024, Paragon 28 reported its financial results for the second quarter of 2024. Among other items, the Company said that it now expects full-year revenue between $249 million and $255 million, down from a previous range of $249 million to $259 million. Paragon 28 further disclosed that, in an effort to cut costs and preserve cash, it is implementing an operational efficiency strategy that includes laying off approximately 7% of its workforce, as well as reducing inventory and adjusting executive compensation.
Following these announcements, Paragon 28's stock price fell $1.67 per share, or 20.1%, to close at $6.64 per share on August 9, 2024.
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SOURCE: Pomerantz LLP