NEW YORK, NY / ACCESSWIRE / October 15, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against 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, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Paragon 28 and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until November 29, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Paragon 28 securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
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.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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SOURCE: Pomerantz LLP