AxoGen, Inc. (AXGN) Accused of Overstating Active Accounts and Backdating Revenue

According to the complaint against the company for alleged violations of the Securities Exchange Act of 1933 and Securities Act of 1934 pursuant to the company's November 2017 SPO and/or May 2018 SPO and/or between August 7, 2017 and December 18, 2018, AxoGen, Inc. (AXGN) held its SPOs in November 2017 and May 2018, and generated almost $150 million in gross proceeds based on misleading offering documents. On December 18, 2018, Seligman Investments published a report stating, among other things, that former employees allege channel stuffing and backdating of revenue, that the number of active accounts may be overstated by a factor of ten, that AxoGen's "growth is driven by unsustainable, aggressive price increases," and that the payments to physicians relative to revenue creates "elevated risks relating to pay-to-play and anti-kickback laws." Since the truth emerged, AxoGen's stock has declined almost 40%.

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