Surgical Tool Maker Paragon 28 Sued Over Accounting, Stock Drops

Paragon 28 Inc. understated losses and overstated surgical product inventory and profit metrics, before executives’ departures and revised financials caused a series of three stock-price declines, an investor alleges.

The company said Aug. 8 that it had identified weaknesses in its accounting controls, Nicholas Tiedt says in a proposed class action filed Oct. 18 in the US District Court for the District of Colorado. The ankle and foot surgery tool maker acknowledged that for the year ending Dec. 31, 2023, it understated an earnings loss by $8.4 million or 86%; overstated its gross profit by $8.4 million or 5%; and ...