Robbins Arroyo LLP: Avinger, Inc. (AVGR) Misled Shareholders According to a Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Avinger, Inc. (NasdaqGM: AVGR) on behalf of all purchasers of Avinger securities pursuant to the company’s initial public offering on January 30, 2015 (the “Offering”), for alleged violations of the Securities Act of 1933 by Avinger’s officers and directors. Avinger, a commercial-stage medical device company, designs, manufactures, and sells image-guided and catheter-based systems used by physicians to treat patients with peripheral arterial disease (“PAD”) in the United States and Europe.
Avinger Accused of Submitting Misleading SEC Filings
According to the complaint, on January 30, 2015, Avinger held the Offering, selling five million shares at $13.00 per share and raising approximately $56,897,000 in net proceeds. Avinger touted its Pantheris product in the company’s prospectus, stating that Pantheris “will significantly enhance our market opportunity within PAD and can expand the overall addressable market for PAD endovascular procedures.” However, Avinger’s filings issued in connection with the Offering failed to disclose that the company’s products were not commercially viable and had reliability issues that would negatively affect sales. On July 12, 2016, Avinger announced disappointing preliminary second quarter 2016 results due to lower than expected utilization of Pantheris and implied that issues with Pantheris were negatively affecting commercialization of the product. As a result, Avinger lowered its full year revenue guidance from a range of $25 to $30 million to a range of $19 to $23 million, causing its stock to drop approximately 40%. Then, on April 10, 2017, Avinger announced that it encountered challenges with product reliability and the commercialization of its Lumivascular technology, and that it was reducing its workforce by approximately 33%. On this news, Avinger’s stock fell $1.00 per share, or 62.5%, to close at $0.60 per share on April 11, 2017.
Avinger Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.