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LOS ANGELES, April 13, 2026 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises AVITA Medical, Inc., (“AVITA" or the "Company") (NASDAQ:RCEL) investors that the firm has initiated an investigation into possible securities fraud, and may file a class action on behalf of investors.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/avita-medical-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Avita’s stock price plummeted $1.13, or 21%, to close at $4.25 per share on August 8, 2025, thereby injuring investors. This sharp market decline followed the August 7, 2025, release of second quarter financial results, which disclosed that “a six-month backlog in unpaid provider claims” for the Company’s Recell product had severely “impacted first-half demand.” Management blamed the downturn on contractors from the Centers for Medicare & Medicaid Services who “neither assigned a price or assigned an inadequate price” for the wound care treatment. This failure to “adjudicate claims in a timely manner” led to an accumulation of unpaid or underpaid filings from January through June. Consequently, the resulting “uncertainty among providers regarding payment expectations” caused a measurable “reduction in RECELL utilization” during the first six months of the year, as medical professionals hesitated to use the product without clear reimbursement guarantees.
The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
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