The Law Offices of Frank R. Cruz announces an investigation of AVITA Medical, Inc. (“Avita” or the “Company”) (NASDAQ: RCEL) on behalf of investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO LOST MONEY ON AVITA MEDICAL, INC. (RCEL), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.
What Is The Investigation About?
On August 7, 2025, Avita released its second quarter 2025 financial results, revealing “a six-month backlog in unpaid provider claims for Recell procedures impacted first-half demand.”
The Company explained that contractors assigned by the Centers for Medicare & Medicaid Services to determine pricing of the Company’s wound care product, Recell, “neither assigned a price or assigned an inadequate price and failed to adjudicate claims in a timely manner.”
As a result, “claims accumulated from January through June, creating a significant backlog of unpaid claims and inadequately paid claims to providers for RECELL procedures. This lack of resolution created uncertainty among providers regarding payment expectations and timelines, which led to a reduction in RECELL utilization during the first half of the year.”
On this news, Avita’s stock price fell $1.13, or 21%, to close at $4.25 per share on August 8, 2025, thereby injuring investors.
Contact Us To Participate or Learn More:
If you purchased Avita securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
The Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, California 90067
Call us at: 310-914-5007
Email us at: info@frankcruzlaw.com
Visit our website at: www.frankcruzlaw.com.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz
310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com