(NewMediaWire) - October 09, 2024 - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Paragon 28, Inc. (“Paragon” or the “Company”) (NYSE: FNA) securities between May 5, 2023 and August 8, 2024 (the “Class Period”).If you are an investor in Paragon and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing pmayer@kaplanfox.com or by calling (646) 315-9003.
On July 30, 2024, after market hours, Paragon disclosed in a filing with the Securities and Exchange Commission (“SEC”) that the Company’s previously issued financial statements for certain quarterly periods in 2023 and 2024 should no longer be relied upon “due to errors in such financial statements” and that a restatement of these prior financial statements is required.
Paragon also disclosed that it had “identified errors in the accounting for inventory including the calculation of its excess and obsolete inventory reserve which resulted in an overstatement of inventory as of March 31, 2023, June 30, 2023, September 30, 2023, December 31, 2023 and March 31, 2024 and an understatement in cost of goods sold for the respective interim periods ended on such dates and for the fiscal year ended December 31, 2023.” Additionally, the Company stated that as a result of the errors and the related restatement, it had identified “one or more material weaknesses in its internal control over financial reporting.”
Following this news, the price of Paragon fell $1.24 per share, or 13.73%, to close at $7.79 per share on July 31, 2024.
Then, on August 8, 2024, after the market closed, Paragon issued restated financials in SEC filings to correct the previously disclosed errors in “the calculation of excess and obsolete inventory, as well as its accounting for inventory variances. . . .”
On this news, the price of Paragon fell $1.67 per share, or 20%, to close at $6.64 per share on August 9, 2024.
The complaint alleges, among other things, that throughout the Class Period, the Defendants failed to disclose to investors: (i) Paragon 28’s financial statements were misstated; (ii) Paragon 28 lacked adequate internal controls and at times understated the extent of the issues with its internal controls; and (iii) 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.
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If you have any questions about this Notice, your rights, or your interests, please contact:
CONTACT:
Pamela A. Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
lking@kaplanfox.com
