#USA #New York #Securities Fraud #Pomerantz Law Firm #AVITA Medical

Pomerantz Law Firm Launches Investigation Into AVITA Medical, Inc.

In a recent announcement, Pomerantz LLP has initiated an investigation on behalf of investors in AVITA Medical, Inc., which trades under the NASDAQ ticker RCEL. This investigation arises amid allegations of potential securities fraud and other illicit business practices by the company and its management team.

Background on the Investigation

The backdrop to this inquiry dates back to August 7, 2025, when AVITA released its financial results for the second quarter. Within this report, the company disclosed a critical issue: a significant backlog in unpaid claims for their Recell procedures. This backlog, which accumulated over the first half of the year, has raised concerns among investors and market analysts about the company’s financial health and operational efficiency.

Specifically, the Centers for Medicare & Medicaid Services' contractors, who are responsible for pricing and adjudicating claims for Recell procedures, failed to set appropriate prices and did not resolve claims in a timely manner. This failure led to a noticeable decline in the utilization of Recell among healthcare providers, as uncertainty loomed over payment expectations for these procedures. Consequently, AVITA’s stock plummeted by $1.13—a startling 21% drop—closing at $4.25 per share on August 8.

The cascading effects of this news have prompted Pomerantz LLP to step in, encouraging all affected investors to reach out for more information regarding the investigation and potential class action lawsuits.

Pomerantz LLP’s Role

Pomerantz LLP is well-regarded as one of the leading firms specializing in corporate, securities, and antitrust class litigation. With a rich history dating back more than 85 years, they have established themselves as advocates for investors, recovering substantial damages awards for victims of corporate misconduct, breaches of fiduciary duty, and securities fraud. Their commitment to fighting for the rights of investors sets a strong precedent within the field of securities law.

The firm's founder, Abraham L. Pomerantz, known as a pioneer in the area of securities class actions, instilled a legacy of advocacy that continues to influence the firm's mission today. With offices located in major cities such as New York, Chicago, London, and Tel Aviv, they are well-placed to lead these investigations and support affected investors.

Importance for Investors

Investors should take the developments surrounding AVITA Medical seriously, particularly in light of the considerable stock price decline following the financial disclosures. Those holding shares in the company may be eligible to join the investigation or a potential class action lawsuit against the company if securities fraud is proven. Pomerantz has urged investors who believe they have experienced losses due to these issues to reach out for guidance.

How to Get Involved

If you are an investor in AVITA Medical, it is advisable to contact Danielle Peyton at Pomerantz LLP at [email protected] or call 646-581-9980, ext. 7980 for further assistance and information on joining the investigation. This investigation represents an essential step toward ensuring accountability and transparency within the company, reinforcing the importance of investor rights in the corporate landscape.

Conclusion

As the investigation unfolds, stakeholders will be keenly observing how AVITA Medical addresses these serious allegations and whether they can recover from this damaging situation. Investors should remain vigilant and informed about their rights and options as the scenario develops, ensuring that they are prepared to act in their best interests as further information becomes available.