Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Paragon 28, Inc. (”Paragon 28” or the “Company”), and reminds investors of the November 29, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995.
The investigation centers around allegations that Paragon 28 and its executives violated federal securities laws by making false and misleading statements or failing to disclose material information. The complaint alleges that:
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Paragon 28’s financial statements were misstated.
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Paragon 28 lacked adequate internal controls and at times understated the extent of issues with its internal controls.
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As a result, defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.
The investigation stemmed from Paragon 28’s July 30, 2024 announcement that its previously issued financial statements for the fiscal year ended December 31, 2023, contained errors and required restatement. This news caused the company’s stock to plummet 13.7%. Further, on August 8, 2024, Paragon 28 announced revised revenue guidance and an “operational efficiency strategy” including workforce reductions and executive compensation realignment. This announcement resulted in a 20.1% drop in the company’s stock price.
Faruqi & Faruqi encourages investors who suffered losses exceeding $75,000 in Paragon 28 between May 5, 2023 and August 8, 2024 to contact the firm directly to discuss their options. The firm’s lead partner, Josh Wilson, can be reached at 877-247-4292 or 212-983-9330 (Ext. 1310). You can also visit www.faruqilaw.com for additional information.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Paragon 28’s conduct to contact the firm, including whistleblowers, former employees, shareholders, and others. The firm welcomes the opportunity to discuss your particular case and all communications will be treated in a confidential manner.
