AVITA Medical, Inc. (RCEL) Investors Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation

Core Insights - Avita Medical, Inc. is under investigation for potential violations of federal securities laws following a significant backlog in unpaid provider claims for its Recell procedures, which negatively impacted first-half demand [1][3]. Financial Performance - On August 7, 2025, Avita reported its second quarter 2025 financial results, indicating a six-month backlog in unpaid provider claims for Recell procedures [3]. - The backlog was attributed to contractors from the Centers for Medicare & Medicaid Services failing to assign adequate pricing and timely adjudication of claims, leading to uncertainty among providers and reduced utilization of Recell [3]. Stock Market Reaction - Following the announcement of the backlog and its implications, Avita's stock price dropped by $1.13, or 21%, closing at $4.25 per share on August 8, 2025, resulting in losses for investors [3].