Robbins Arroyo LLP: Avinger, Inc. (AVGR) Misled Shareholders According to a Recently Filed 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 Filing Misleading Registration Statement
According to the complaint, on January 30, 2015, Avinger held the Offering, selling five million shares at $13.00 per share, raising approximately $56,897,000 in net proceeds. The complaint alleges that Avinger’s registration statement issued in connection with the Offering failed to disclose that the company’s Pantheris and Lumivascular products had substantial reliability issues that would negatively affect sales of the company’s products. On July 12, 2016, Avinger announced disappointing preliminary second quarter 2016 results, attributing its results to lower than expected utilization of Pantheris. 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.