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Case Status:    ONGOING    
On or around 08/01/2019 (Ongoing date of last review)

Filing Date: February 23, 2018

MiMedx is a medical device development and supply company, utilizing a number of different distributors to deliver its products.

According to the law firm press release, in December of 2016, MiMedx 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 denied these claims. And in September 2017, when market analysts published reports purportedly corroborating these allegations, among others, MiMedx again denied any wrongdoing and sued for defamation.

Then, on February 20, 2018, pre-market, MiMedx announced that the Company's audit committee "has 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. Company executives are also reviewing, among other items, the accounting treatment of certain distributor contracts."

On this news, the Company's stock fell more than 39% to close at $8.75 on February 20, 2018, causing tens of millions of dollars in losses to investors.

The complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that (i) MiMedx was engaged in a "channel-stuffing" scheme designed to inappropriately recognize revenue that had not yet been realized; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) that as a result of the foregoing, MiMedx's publicly disseminated financial statements were materially false and misleading.

On January 16, 2019, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated Complaint on May 1, 2019.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Medical Equipment & Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MDXG
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Georgia
DOCKET #: 18-CV-00830
JUDGE: Hon. Eleanor L. Ross
DATE FILED: 02/23/2018
CLASS PERIOD START: 03/07/2013
CLASS PERIOD END: 02/19/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Block & Leviton LLP
  2. Holzer & Holzer, LLC
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 18-CV-00830
JUDGE: Hon. Eleanor L. Ross
DATE FILED: 05/01/2019
CLASS PERIOD START: 03/07/2013
CLASS PERIOD END: 06/29/2018
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cavanagh & O'Hara
    407 East Adams Street, Cavanagh & O'Hara, IL 62701
    217.544.1771 217.544.1771 ·
  2. Robbins Geller Rudman & Dowd LLP (Atlanta)
    3424 Peachtree Road, NE, Suite 1650, Robbins Geller Rudman & Dowd LLP (Atlanta), GA 30326
    404.504.6500 404.504.6501 ·
No Document Title Filing Date
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