Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Paragon 28 To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $75,000 in Paragon 28 between May 5, 2023 and September 20, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Oct. 30, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Paragon 28, Inc. (“Paragon 28” or the “Company”) (NYSE: FNA) and reminds investors of the November 29, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that throughout the Class Period defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Paragon 28’s financial statements were misstated; (2) Paragon 28 lacked adequate internal controls and at times understated the extent of the issues with its internal controls; and (3) as a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all times.
On July 30, 2024, after the market closed, Paragon 28 filed a current report on Form 8-K with the SEC disclosing that “the Company’s previously issued audited consolidated financial statements for the fiscal year ended December 31, 2023, contained within the Annual Report on Form 10-K for that year . . . and the unaudited condensed consolidated financial statements contained within the Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, September 30, 2023, and March 31, 2024 should no longer be relied upon due to errors in such financial statements, and therefore a restatement of these prior financial statements is required.”
On this news, Paragon 28’s stock fell $1.24 per share, or 13.7%, to close at $7.79 per share on July 31, 2024.
Then, on August 8, 2024, the Company issued a press release announcing its financial results for the second quarter of 2024. In it, the Company issued revised full-year revenue guidance of $249 million to $255 million, down from a previous range of $249 million to $259 million. The Company also announced the implementation of an “operational efficiency strategy” that involved a 7% reduction in workforce, an “inventory burn-down”, and a “[o]ne-time realignment of executive compensation for 2024.”
On this news, Paragon 28’s stock fell $1.67 per share, or 20.1%, to close at $6.64 per share on August 9, 2024.
Finally, after the market closed on September 20, 2024, Paragon disclosed the abrupt departure of Defendant Erik Mickelson, the Company’s Chief Accounting Officer.
This news sent the price of Paragon shares down $0.30 (-4.3%) on September 23, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Paragon 28’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Paragon 28 class action, go to www.faruqilaw.com/FNA or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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