AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Investigation Launched Against AVITA Medical, Inc. (RCEL) for Securities Fraud
ByAinvest
Wednesday, Aug 20, 2025 5:41 pm ET1min read
AVITA Medical, Inc. (RCEL) is under investigation for possible securities fraud following the release of its Q2 2025 financial results, which revealed a backlog of unpaid provider claims for its wound care product, Recell. As a result, the company's stock price fell 21%. Investors who lost money are urged to contact the Law Offices of Frank R. Cruz for potentially pursuing a claim to recover their loss.
AVITA Medical, Inc. (RCEL), a company specializing in wound care products, is under investigation for possible securities fraud. The Law Offices of Frank R. Cruz announced the probe on behalf of investors who may have been affected by the company's financial reporting. The investigation stems from the release of AVITA's Q2 2025 financial results, which disclosed a significant backlog of unpaid provider claims for its Recell wound care product.According to the company's report, contractors assigned by the Centers for Medicare & Medicaid Services (CMS) failed to properly assign prices or adjudicate claims in a timely manner. This led to a six-month backlog of unpaid claims, causing uncertainty among providers regarding payment expectations and timelines. As a result, the utilization of Recell procedures declined during the first half of the year.
The revelation of this backlog had a significant impact on AVITA's stock price. On August 8, 2025, the stock fell by $1.13, or 21%, to close at $4.25 per share. This drop in stock value has injured investors, prompting the Law Offices of Frank R. Cruz to urge those who lost money to contact them for potentially pursuing a claim to recover their losses.
Investors who purchased AVITA securities and have information relevant to these claims are encouraged to contact the Law Offices of Frank R. Cruz at 310-914-5007, via email at info@frankcruzlaw.com, or visit their website at www.frankcruzlaw.com. For updates, follow them on Twitter at twitter.com/FRC_LAW.
References:
[1] https://www.businesswire.com/news/home/20250820660176/en/Securities-Fraud-Investigation-Into-AVITA-Medical-Inc.-RCEL-Announced-Investors-Who-Lost-Money-Urged-To-Contact-The-Law-Offices-of-Frank-R.-Cruz
[2] https://340breport.com/federal-judge-rejects-health-systems-bid-for-interest-on-340b-medicare-lump-sum-repayments/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet