Investigating Potential Claims involving MiMedx Group
Are you concerned about your investment in MiMedx Group Inc.? If so, the securities attorneys at The White Law Group may be able to help you.
MiMedx Group, Inc. incorporated on February 28, 2008, is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants human placental tissue, skin and bone, according to its website.
According to SEC filings on February 20, 2018, MiMedx announced that it will postpone the release of its financial results and Form 10-K filing for the year ended December 31, 2017.
In the filings, MiMedx said it has engaged “independent legal and accounting advisors to conduct an internal investigation into current and prior-period matters relating to the allegations regarding certain sales and distribution practices at the Company.”
Following this news, shares of MiMedx were down more than 38% on intraday trading.
Update on November 27, 2019
According to a press release yesterday, MiMedx Group, Inc., and three former top executives, have been charged with allegedly “defrauding investors by misstating the company’s revenue and attempting to cover up their misconduct.”
The former senior executives reportedly deceived the SEC, auditors, and the investing public by repeatedly allegedly misrepresenting the financial condition of a publicly traded company, according to the U.S. attorney’s office . “They allegedly conspired, through secret agreements and financial inducements with four distributors, to misstate sales revenue.”
According to the complaint, from 2013 to 2017, MiMedx purportedly prematurely recognized revenue from sales to MiMedx’s distributors and allegedly exaggerated MiMedx’s revenue growth.
The SEC further alleges that the two MiMedx senior executives allegedly entered into undisclosed side arrangements with five distributors which “allowed distributors to return product to MiMedx or conditioned distributors’ payment obligations on sales to end users.”
The White Law Group is investigating potential claims involving broker dealers who may have improperly recommended MiMedx to investors.
If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses through FINRA arbitration.
FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.
If you have concerns about your investment in MiMedx, The White Law Group may be able to help you. Please call The White Law Group at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.