Bioventus (BVS) $15.25M Investor Settlement
Bioventus (BVS) has agreed to settle $15.25M with investors to resolve claims related to financial issues, including unexpected refund claims from customers.
Outline
In late 2022, Bioventus updated its Q3 results on November 21, 2022, and reported a 3.5% decline in sales for the full year of 2022, mainly due to unexpected refund claims from customers and lower-than-expected average selling prices. Following these announcements, $BVS fell significantly, leading to a lawsuit from investors.
Timeline
On November 8, 2022: Bioventus initially reported its Q3 financial results.
On March 31, 2023: Bioventus updated its report, revealing a 3.5% sales decline for 2022.
$BVS dropped 11.6% following this news that same day.
In April 2023: Reali, the CFO of Bioventus, stepped down from his position.
On January 12, 2023: Investors filed a lawsuit against Bioventus.
Background
On November 21, 2022, Bioventus revised its Q3 results due to unexpected refund claims and lower-than-expected prices for Durolane and Gelsyn. This update replaced their previous report from November 8, 2022.
Then, on March 31, 2023, Bioventus announced its full-year 2022 financial results, revealing a 3.5% decline in sales. This decline was mainly due to unexpected customer refunds, including a significant $4M claim from the customer UnitedHealthcare.
The financial results also highlighted lower average selling prices (ASP) for both Durolane and Gelsyn.
Following this announcement, $BVS dropped by 11.6%.
Five days after the announcement of the revised report, John Reali, the CFO, stepped down from his position.
After that, on January 12, 2023, investors filed a lawsuit against Bioventus. They claimed the company misled them about its financial health by not disclosing unexpected rebate claims.
What can investors expect now?
Bioventus reached an agreement with $BVS investors to settle claims related to financial issues, including unexpected refund claims from customers.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons who purchased or otherwise acquired Bioventus Class A common stock during the period from February 11, 2021, through November 21, 2022, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.49 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $1.96 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit the claim and make sure you get the maximum possible payout
3. File a claim with the settlement administration
4. Correspond with the settlement administration to resolve emerging issues
5. Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.