P28 stock recently took a dive and alot of people are asking me what happened. Let me try to shed some light on the situation.
Apparently, P28 found some errors in past financial statements for a few previous periods and is having to remedy these statements.
If you read the July 30th SEC announcement, https://d18rn0p25nwr6d.cloudfront.net/CIK-0001531978/8113e1b5-681b-44de-ae3d-ef8df19dd73b.pdf, P28 is claiming that COGS was off $8.4M for YE 2023 and $1.7M for March 2024. However revenues and net losses were reported correctly.
Rumors on the street are that ZB backed off a takeover of P28 once this financial reporting came to light.
Lawyers are organizing a shareholder suit - FNA Investors Have Opportunity to Join Paragon 28, Inc. Securities Fraud Investigation with the Schall Law Firm. https://www.businesswire.com/news/home/20240731046152/en/FNA-Investors-Have-Opportunity-to-Join-Paragon-28-Inc.-Securities-Fraud-Investigation-with-the-Schall-Law-Firm
P28 will announce earnings on August 8, 2024 and we will all learn more on this date.
5 take home messages from the P28 SEC Filing:
Based on the SEC filing, here are 5 summaries.
1. Material Weaknesses in Financial Repo...
