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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of AVITA Medical, Inc. - RCEL

1. Pomerantz LLP investigates Avita Medical for potential securities fraud. 2. Avita reported a six-month backlog of unpaid provider claims for Recell. 3. Delayed claim adjudication reduced Recell utilization, impacting financial performance. 4. Avita's stock fell 21% following the disclosure of these issues. 5. Uncertainty among providers regarding payments may continue to affect RCEL.

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Why Bearish?

The stock price has already dropped 21%, indicating market concerns about operational issues. Historical patterns show that class action investigations often lead to further declines in affected companies.

How important is it?

The ongoing investigation and backlog significantly affect RCEL’s operational credibility, influencing investor perceptions and stock performance.

Why Short Term?

Immediate investor sentiment driven by backlog and litigation risk could trigger further sell-offs. Companies previously faced with class action lawsuits often experience short-term volatility.

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AVTARCELCMS
NEW YORK, Sept. 10, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of  AVITA Medical, Inc. (“Avita” or the “Company”) (NASDAQ: RCEL).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether Avita and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On August 7, 2025, Avita reported its financial results for the second quarter of 2025.  Among other items, Avita disclosed “a six-month backlog in unpaid provider claims for Recell procedures impacted first-half demand.”  Avita explained that contractors assigned by the Centers for Medicare & Medicaid Services to determine pricing of Recell “neither assigned a price or assigned an inadequate price and failed to adjudicate claims in a timely manner.”  Accordingly, “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 per share, or 21%, to close at $4.25 per share on August 8, 2025. Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:Danielle PeytonPomerantz LLPdpeyton@pomlaw.com646-581-9980 ext. 7980

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