Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in MiMedx Group (NASDAQ: MDGX) in connection to alleged violations of securities laws by MDGX. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in MiMedx Group from March 7, 2013 until February 19, 2018.
The class action complaint specifically alleges that during the period in question, MDGX might have provided false and/or misleading material information, and/or failed to disclose adverse material information, chiefly: that the company was participating in “channel-stuffing,” a way of improperly recognizing revenue which the company had yet to realize; that the company did not have proper internal controls over its financial reporting procedures; and that consequently the company’s statements to the public during the relevant period were false and misleading. In December 2016, two former employees of the company filed a complaint alleging that they were the subjects of retaliatory termination after they reported improper revenue recognition practices, which the company denied. When market research analysts issued publications, in September 2017, reporting on the alleged improper revenue recognition activities, the company denied the allegations and filed suit against the research companies, as they had against the former employees. When the company issued a press release on February 20, 2018, announcing, among other things, that it was reviewing account activities and that it would delay the release of its Q4 2017 financial results, its share price fell 39.53% on that day. When the Wall Street Journal published an article on February 22, 2018, reporting that the company did not report certain payments to doctors, the company’s share price fell 13.48% over the following two trading sessions. The complaint alleges that when true facts emerged, investors suffered losses.
According to the company’s website, MiMedx Group is a biotechnology company engaged in the processing, marketing, and distribution of human amniotic tissue. It has “distributed over 1,000,000 amniotic tissue grafts worldwide and achieved profound clinical outcomes in multiple therapeutic areas including ophthalmology, spine, chronic wounds, dental, orthopedic surgery, sports medicine, and urology,” according to its description. The company trades on the Nasdaq exchange under the symbol MDGX.
A class action lawsuit has already been filed in connection with MiMedx Group. If you wish to serve as lead plaintiff in the MDGX lawsuit, you must move the Court no later than April 25, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.