Paragon 28, Inc. (FNA) Securities Class Action

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%.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the FNA investigation about?

We are focused on whether Paragon 28 may have inflated its profits and asset values by employing improper accounting tactics related to inventory.

WHAT SHOULD I DO?

I worked at FNA. What should I do?

If you were an employee of FNA, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower 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, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in FNA, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any FNA investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.