Bioventus (US:BVS) GlobeNewswire News Roomยท2024-08-03 01:00Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Bioventus Inc. regarding breaches of fiduciary duties by its board of directors following a class action complaint related to the company's IPO and subsequent financial disclosures [1]. Company Overview - Bioventus is a medical device company focused on developing and commercializing clinical treatments that enhance the body's natural healing process [2]. IPO Details - Bioventus conducted its IPO on February 11, 2021, issuing 8 million shares of Class A common stock at an offering price of $13.00 per share [3]. Allegations of Misconduct - The Offering Documents were alleged to be negligently prepared, containing untrue statements and omissions that misled investors about the company's financial health and operations [4]. - Specific allegations include significant liquidity issues, unsustainable rebate practices, and deficient internal controls over financial reporting [4]. Financial Reporting Issues - On November 16, 2022, Bioventus announced it could not timely file its quarterly report due to a decline in market capitalization and the need to assess potential non-cash impairment charges [5]. - The company later disclosed a non-cash impairment charge of $189.2 million and changes to its historical practices regarding rebate recognition, impacting its ability to meet debt covenants [6]. Stock Performance - Following the financial disclosures, Bioventus's stock price fell significantly, closing at $1.97 per share on November 17, 2022, a decline of 33.67% from the previous day [5]. - By November 22, 2022, the stock price further declined to $1.81 per share, representing an overall decline of 86.08% from the IPO price [7]. Investor Impact - The wrongful acts and omissions by the defendants have resulted in significant losses for investors, as the market value of Bioventus's securities has drastically decreased [8].