SAN DIEGO, Oct. 10, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired Paragon 28, Inc. (NYSE: FNA) (“Paragon 28” or the “Company”) common stock and those who purchased Paragon 28 call options or sold put options between May 5, 2023 and August 8, 2024, inclusive (the “Class Period”), charging the Company and certain of its current and former senior executives with violations of the federal securities laws (collectively, “Defendants”).
Paragon 28 investors have until November 29, 2024 to seek appointment as lead plaintiff of the Paragon 28 class action lawsuit.
If you purchased Paragon 28 common stock or call options, or sold put options between May 5, 2023 and August 8, 2024, and suffered substantial losses, and you wish to obtain additional information or serve as lead plaintiff in this lawsuit, you may submit your information and contact us here: https://dicellolevitt.com/securities/paragon-28/.
You can also contact DiCello Levitt attorneys Brian O’Mara or Hani Farah by calling (888) 287-9005 or emailing investors@dicellolevitt.com. Those who inquire by email are encouraged to include their mailing address, telephone number, and the number of shares purchased.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice.
Case Allegations
Paragon 28 develops, distributes, and sells foot and ankle orthopedic surgical implants.
The Paragon 28 class action lawsuit alleges that Defendants made materially false and misleading statements and concealed material adverse facts concerning Paragon 28’s business, operations, and prospects. Specifically, Defendants’ misstatements touted the accuracy of Paragon 28’s financial reporting and efficacy of internal controls when at the same time the Company was understating its cost of goods sold and overstating its inventories.
The truth began to emerge on July 30, 2024, when Paragon 28 announced that “the Company’s previously issued audited consolidated financial statements for the fiscal year ended December 31, 2023 . . . 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.” In response to this news, Paragon 28’s stock price fell $1.24 per share, or 13.7%.
Then, on August 8, 2024, Paragon 28 filed an amended 2023 annual report on Form 10-K/A for the year ended on December 31, 2023, and an amended quarterly report on Form 10-Q/A for the period ended March 31, 2024. These amended reports provided restated financial figures and restated figures for inventories and net and cost of goods sold. As a result, Paragon 28’s stock price fell $1.67 per share, or 20%.
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