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Wolf Haldenstein: Mimedx Investor Reminder

ACCESSWIRE

By Wolf Haldenstein Adler Freeman & Herz LLP

NEW YORK, NY / ACCESSWIRE / April 17, 2018 / Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed against MiMedx Group, Inc. (”MiMedx” or the ”Company”) (NASDAQ: MDXG) in the United States District Court for the Northern District of Georgia on behalf of investors who purchased or otherwise acquired MiMedx securities between March 7, 2013 and February 21, 2018, both dates inclusive (the ”Class Period”).

Investors who have incurred losses in shares of MiMedx Group, Inc. re urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.

If you have incurred losses in the shares of MiMedx Group, Inc. and would like to assist with the litigation process as a lead plaintiff, you may, no later than April 25, 2018, request that the Court appoint you lead plaintiff of the proposed class. Please contact
Wolf
Haldenstein
to learn more about your rights as an investor in MiMedx Group, Inc.

MiMedx Group Inc. is a biopharmaceutical company that focuses on biomaterials for soft tissue repair, such as tendons, ligaments, and cartilage, as well as other biomaterial based products for other medical applications.

The filed Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:

  • MiMedx engaged in a ”channel-stuffing” scheme designed to inappropriately recognize revenue that had not yet been realized;
  • MiMedx failed to disclose its financial ties to physicians, as required by federal law;
  • the Company lacked adequate internal controls over financial reporting; and
  • as a result of the foregoing, MiMedx shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.

In December of 2016, two former employees of MiMedx filed a complaint against the Company, alleging, among other things, retaliatory termination by MiMedx after reporting fraudulent revenue recognition practices (defined herein as the ”Whistleblower Action”). In particular, those employees alleged that MiMedx had engaged in a ”channel-stuffing scheme” to ”fraudulently recognize revenue [purportedly earned under its distribution agreement with AvKARE] in its certified financial statements before the revenue had been realized or realizable and earned.” The Company denied those claims and sued the employees for tortious interference.

In September 2017, several market research analysts published reports which, among other things, focused on the allegedly fraudulent revenue recognition practices of MiMedx alleged in the Whistleblower Action. MiMedx denied these allegations and sued each of the research companies for, among other things, libel, slander and defamation.

On February 20, 2018, MiMedx issued a press release entitled ”MiMedx Postpones Release of its Fourth Quarter and Fiscal Year 2017 Financial Results,” announcing that its audit committee ”ha[d] engaged independent legal and accounting advisors to conduct an internal investigation into current and prior-period matters relating to allegations regarding certain sales and distribution practices at the Company.” MiMedx advised investors that ‘‘Company executives are also reviewing, among other items, the accounting
treatment of certain distributor contracts.”
The Company further announced that, because of this internal investigation, it would delay the release of its fourth quarter and fiscal year 2017 financial results.

On this news, MiMedx’s share price fell $5.72, or 39.53%, to close at $8.75 on February 20, 2018.

Wolf Haldenstein Adler Freeman & Herz LLP has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf
Haldenstein
by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.

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Contact:

Wolf Haldenstein Adler Freeman & Herz LLP
Kevin Cooper, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com, kcooper@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774

Attorney Advertising. Prior results do not guarantee or predict a similar outcome.

SOURCE: Wolf Haldenstein Adler Freeman & Herz LLP

ReleaseID: 496365