According to the law firm press release, MiMedx is a medical device company. The Company is focused on developing and marketing biomaterials for soft tissue repair, such as tendons, ligaments, and cartilage, as well as other biomaterial based products for other medical applications.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was in violation of federal regulations by engaging in improper marketing and sales practices; and (2) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On December 31, 2014, after the close of trading, the Company issued a press release announcing the receipt of a civil subpoena from the Office of Inspector General ("OIG") of the Department of Health and Human Services ("HHS"). Moreover, the Company announced the same day that it had filed a lawsuit against one of its competitors, Organogenesis, Inc. ("Organogenesis"), for tortious interference of contract, alleging that it had interfered with MiMedx's dealings with the Veterans Administration. Within a matter of weeks, MiMedx voluntarily dismissed the lawsuit.
On this news, MiMedx securities declined $1.79 per share, or more than 15%, to close at $9.74 per share on January 2, 2015, the next trading day.
On April 23, 2015, the Court approved plaintiffs' voluntary dismissal of this case.