The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Colorado on behalf of those who acquired Paragon 28, Inc. (“Paragon 28” or the “Company”) (NYSE: FNA) securities during the period of May 5, 2023 through August 8, 2024, inclusive (“the Class Period”). Investors have until November 29, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
[Click here to learn more about the class action]
On July 30, 2024, Paragon 28 filed with the U.S. Securities and Exchange Commission (“SEC”) a current report on its Form 8-K which stated that the Company’s previously issued consolidated financial statements in its annual report for 2023, in addition to its financial statements 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 accounting errors, and therefore a restatement of these prior financial statements would be required. The accounting errors related to the Company’s inventory, including the calculation of its excess and obsolete inventory, and 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.”
On this news, the price of Paragon 28 shares declined by $1.24 per share, or approximately 13.7%, from $9.03 per share on July 30, 2024 to close at $7.79 on July 31, 2024.
The lawsuit alleges that Paragon 28 made false and/or misleading statements and/or failed to disclose that: (1) Paragon 28’s financial statements were misstated and (2) Paragon 28 lacked adequate internal controls and at times understated the extent of the issues with its internal controls.
If you purchased or otherwise acquired Paragon 28 securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this CONTACT FORM, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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