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AxoGen Faces Derivative Suit Alleging Channel Stuffing (1)

Aug. 12, 2019, 6:24 PMUpdated: Aug. 12, 2019, 8:20 PM

AxoGen Inc.'s leadership allegedly misled investors about the company’s price increases, low sales, and channel stuffing, a shareholder derivative complaint said Aug. 12.

The nerve repair technology firm’s directors didn’t tell investors that price increases meant to hide low sales risked alienating customers, the complaint filed in the U.S. District Court for the Middle District of Florida said. AxoGen also failed to warn investors that its sales incentives made channel stuffing—sending more products to clients than they could possibly sell to patients—more likely, the complaint said.

“This improperly filed derivative complaint is entirely based on the self-serving contentions of a ...