LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Paragon 28, Inc. (“Paragon” or the “Company”) (NYSE: FNA) common stock between May 5, 2023 and August 8, 2024, inclusive (the “Class Period”). Paragon investors have until November 29, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On July 30, 2024, after market hours, Paragon disclosed that the Company’s previously issued financial statements from 2023 and 2024 should no longer be relied upon “due to errors in such financial statements” related to “accounting” and would therefore require restatements. Additionally, the Company reported that it had identified “one or more material weaknesses in its internal control over financial reporting.”
On this news, Paragon’s stock price fell $1.24, or 13.7%, to close at $7.79 per share on July 31, 2024, thereby injuring investors.
Then, on August 8, 2024, after market hours, Paragon released its amended annual report for 2023 and the first quarter 2024 report, providing restated financial figures, revealing understated cost of goods sold and overstated net inventories.
On this news, Paragon’s stock price fell $1.67, or 20.1%, to close at $6.64 per share on August 9, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Paragon common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
