BIOVENTUS INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired Bioventus Inc. (“Bioventus” or the “Company”) (NASDAQ: BVS) securities pursuant and/or traceable to the Offering Documents issued in connection with the Company’s February 11, 2021 IPO; and/or between February 11, 2021 and November 21, 2022, both dates inclusive. The lawsuit seeks to recover Bioventus shareholders’ investment losses.
If you purchased securities in Bioventus between February 11, 2021 and November 21, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
Bioventus is a medical device company that focuses on developing and commercializing clinical treatments to engage and enhance the body’s natural healing process.
On January 20, 2021, Bioventus filed a registration statement with the SEC on February 10, 2021 (the “Registration Statement”). On or about February 11, 2021, pursuant to the Registration Statement, Bioventus conducted the IPO, issuing 8 million shares of its Class A common stock to the public at the Offering price of $13 per share. On February 12, 2021, Bioventus filed a prospectus in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and the Registration Statement are the “Offering Documents”).
Plaintiff alleges that Defendants made materially false and misleading statements in the Offering Documents and throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (i) Bioventus suffered from significant liquidity issues; (ii) the Company’s rebate practices were unsustainable; (iii) accordingly, Defendants overstated the Company’s business and financial prospects; (iv) Bioventus maintained deficient disclosure controls and procedures and internal control over financial reporting with respect to the timely recognition of quarterly rebates; and (v) all the foregoing increased the risk that the Company would be forced to recognize a significant non-cash impairment charge, could not timely file one or more of its financial reports, would have to amend one or more of its financial statements, and could not meet its financial obligations as they came due.
On November 16, 2022, Bioventus issued a press release announcing that it could not timely file its quarterly report for third quarter of 2022 because “of the recent decline in the Company’s market capitalization subsequent to its previously announced financial results for the third quarter of 2022,” which resulted in the Company needing “additional time . . . to assess whether a non-cash impairment charge is required for the third quarter of 2022.” Bioventus also revealed that it “is seeking resolution related to the validity of a revised invoice” for certain “rebate claims” and that “[t]he recognition of additional rebates may impact Bioventus’ recently announced revenue guidance.” In addition, Bioventus disclosed that “its internal controls related to the timely recognition of quarterly rebates were inadequate specifically for the period ended October 1, 2022” and that the Company “is also evaluating whether [it] will be able to meet all of its financial obligations as they come due within one year after the date its financial statements for the period ended October 1, 2022, are issued.” On this news, Bioventus’s stock price fell almost 34%.
Then, on November 21, 2022, Bioventus issued a press release announcing revised third quarter 2022 results to account for “additional rebate claims related to certain of the Company’s products and a non-cash impairment charge” that amounted to $189.2 million “due to the recent decline in our market capitalization subsequent to our previously announced financial results for the three and nine months ended October 1, 2022.” That same day, Bioventus belatedly filed its quarterly report on Form 10-Q with the SEC for the third quarter of 2022, advising of various changes to Bioventus’s historical practices that were necessary to account for rebates, stating that these changes materially impacted the Company’s evaluation of its ability to meet debt covenants, resulting in liquidity and going concern disclosures. On this news, Bioventus’ stock price fell over 3%.
If you wish to serve as lead plaintiff, you must move the Court no later than March 13, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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