Avinger Inc. (NASDAQ:AVGR)
Shares of Avinger Inc. (NASDAQ:AVGR) more than doubled in value after the company announced its system for the treatment of in-stent restenosis, Pantheris® Lumivascular atherectomy has been awarded a Conformité Européenne (CE) marking designation. The stock was up by 119% to end Wednesday’s trading session at $0.46 a share.
AVGR Stock Performance
However, Avinger Inc. (NASDAQ:AVGR) continues to trade near all-time lows after plunging from its January highs of $3.50 a share.
The CE mark which validates the use of the in-stent restenosis system in Europe could be the catalyst that will help push the stock up from the current lows. Demand for alternative treatment options for the condition, which normally results in narrowing of blood vessels, is on the rise.
“CE Marking for this particular indication is an important milestone for Avinger that addresses an area of unmet clinical need for patients suffering from PAD. Onboard image guidance coupled with directional plaque excision offers the interventionist clear benefits when treating in-stent restenosis and represents another opportunity to improve patient outcomes,” said CEO, Jeff Soinski.
Class Action Lawsuit
However, Avinger Inc. (NASDAQ:AVGR) remains the subject of increased scrutiny on Wall Street over claims that certain officials failed to fulfill their fiduciary duty to shareholders on or around January 30, 2015. A class-action lawsuit filed by Bronstein, Gewirtz & Grossman, and LLC alleges that the Registration Statement and Prospectus that Avinger used for its Initial Public Offering contained materially false and misleading statements.
The lawsuit goes on to claim that Avinger Inc. (NASDAQ:AVGR) did not have an adequate sales and marketing personnel needed to accelerate sales growth for the lumivascular platform products. The law firm also alleges that the company failed to notify investors that it was experiencing problems with the robustness of the lumivascular platform devices.
Bronstein, Gewirtz & Grossman, LLC claims that Avinger failed to disclose that physicians and hospitals were demanding more extensive and comprehensive training before they bought the company’s products.
The filling of the lawsuit follows the share price decline in Avinger Inc. (NASDAQ:AVGR from $13, as of the IPO date, to current lows of $0.46 a share. The class action lawsuit seeks to recover the damages that shareholders incurred on the company providing misleading statements.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.