1. RCEL faces a securities investigation concerning possible law violations. 2. A six-month backlog of unpaid claims has affected RECELL utilization. 3. Stock price fell 21% following significant claim resolution issues. 4. Uncertainty in payment timelines impacted demand for RECELL procedures.
The decline in stock price due to backlog issues indicates market concern over financial health, reminiscent of other firms facing similar claim-related obstacles that experienced prolonged downturns. A steep drop like this raises alarms for investors, suggesting systemic issues that may not resolve quickly.
The investigation pertains directly to RCEL and significant operational issues, making it quite relevant. The stock's sharp decline highlights ongoing investor concerns over the company's ability to resolve its claims backlog effectively.
Immediate fallout from financial results affects short-term investor confidence and stock performance, akin to past rapid declines after negative earnings reports. However, if issues are addressed quickly, recovery can be seen fairly soon.
Law Offices of Howard G. Smith announces an investigation on behalf of AVITA Medical, Inc. ("Avita" or the "Company") (NASDAQ: RCEL) investors concerning the Company's possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN AVITA MEDICAL, INC. (RCEL), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
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:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com
Visit our website at: www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250821512389/en/
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com