A lawsuit was filed on behalf of investors in MiMedx Group Inc (NASDAQ:MDXG) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/12/2018 -- An investor, who purchased shares of MiMedx Group Inc (NASDAQ:MDXG), filed a lawsuit York over alleged violations of Federal Securities Laws by MiMedx Group Inc.
Investors who purchased shares of MiMedx Group Inc (NASDAQ:MDXG) have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2018. NASDAQ:MDXG investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Marietta, GA based MiMedx Group, Inc. is an integrated developer, processor and marketer of regenerative biomaterial products and bioimplants human placental tissue, skin and bone. MiMedx Group Inc reported that its annual Total Revenue rose from $187.30 million in 2015 to $245.01 million in 2016 and that its Net Income declined from $29.45 million in 2015 to $11.97 million in 2016.
In December of 2016, MiMedx Group, Inc was sued by two former employees alleging wrongful termination in relation to their reporting of a "channel-stuffing scheme" to "fraudulently recognize revenue" with regard to a particular distribution contract. MiMedx Group, Inc denied these claims. And in September 2017, when market analysts published reports purportedly corroborating these allegations, among others, MiMedx Group, Inc again denied any wrongdoing and sued for defamation.
Shares of MiMedx Group Inc (NASDAQ:MDXG) grew to as high as $14.55 per share in late January 2018.
On February 20, 2018, MiMedx Group Inc announced that it was postponing the release of its fourth quarter and fiscal year 2017 financial results. MiMedx Group Inc also announced that its Audit Committee is conducting "an internal investigation into current and prior-period matters relating to allegations regarding certain sales and distribution practices at the Company."
Shares of MiMedx Group Inc (NASDAQ:MDXG0 declined to $$7.10 per share on February 22, 2018.
According to the complaint the plaintiff alleges on behalf of purchasers of MiMedx Group Inc (NASDAQ:MDXG) common shares between March 7, 2013 and February 19, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 7, 2013 and February 19, 2018, the defendants made false and/or misleading statements and/or failed to disclose that MiMedx was engaged in a "channel-stuffing" scheme designed to inappropriately recognize revenue that had not yet been realized, that the Company lacked adequate internal controls over financial reporting, and that that as a result of the foregoing, MiMedx's publicly disseminated financial statements were materially false and misleading
Those who purchased shares of MiMedx Group Inc (NASDAQ:MDXG) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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