Paragon 28 (FNA) Admits Improper Accounting, Shares Fall – Hagens Berman

/EIN News/ -- SAN FRANCISCO, Aug. 02, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Paragon 28, Inc. (NYSE: FNA) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

Visit: www.hbsslaw.com/investor-fraud/FNA
Contact the Firm Now: FNA@hbsslaw.com | 844-916-0895

Paragon 28, Inc. (FNA) Investigation:

Medical device company Paragon 28 is facing mounting scrutiny over its financial reporting practices. Hagens Berman, a prominent shareholder rights firm, has initiated a probe, investigating whether the company may have intentionally manipulated its financial statements.

At the heart of the investigation is Paragon 28’s inventory accounting and the effectiveness of its internal controls. Doubts about the company’s financial integrity were first raised on April 4, 2023, when CFO Stephen Deitsch abruptly resigned. The news sent shockwaves through the market, causing the company’s share price to plummet by over 15%.

The situation escalated dramatically on July 30 when Paragon 28 announced that its previously reported financial results for 2023 and the first quarter of 2024 were unreliable. The company admitted to material weaknesses in its internal controls and disclosed significant accounting errors. Specifically, Paragon 28 understated its cost of goods sold by 19%, resulting in an overstated operating loss by 22% and net loss by 20%. This revelation triggered another sharp decline in the company’s stock price, falling nearly 14%.

“We’re focused on whether Paragon 28 may have inflated its profits and asset values by employing improper accounting tactics related to inventory,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Paragon 28 and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Paragon 28 investigation, read more »

Whistleblowers: Persons with non-public information regarding Paragon 28 should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FNA@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

Contact:
Reed Kathrein, 844-916-0895