MiMedx investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, MiMedx is a biopharmaceutical company that focuses on biomaterials for soft tissue repair, such as tendons, ligaments, and cartilage, as well as other biomaterial based products for other medical applications.
The Class Period commences on March 7, 2013, when MiMedx issued a press release and filed the same as Exhibit 99.1 to a Form 8-K with the SEC, entitled “MiMedx Announces 2012 Results,” announcing the financial and operating results for the period ended December 31, 2012.
According to the complaint, on February 20, 2018, MiMedx issued a press release, “MiMedx Postpones Release of its Fourth Quarter and Fiscal Year 2017 Financial Results,” announcing that its audit committee “ha[d] 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 [c]ompany.” Following this news, MiMedx’s share price fell $5.72, or 39.53%, to close at $8.75 on February 20, 2018.
Then, on February 22, 2018, the Wall Street Journal published an article entitled “MiMedx, Fast-Growing Developer of Tissue Graft Products, Didn’t Report Payments to Doctors.” The article reported that MiMedx “has financial ties to more than 20 doctors . . . but the company hasn’t reported these payments to the government under a 2013 law.” Following publication of the Wall Street Journal article, MiMedx’s share price fell $1.22, or 13.48%, over the next two trading sessions, closing at $7.83 on February 23, 2018.
The complaint alleges that, throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) MiMedx engaged in a “channel-stuffing” scheme designed to inappropriately recognize revenue that had not yet been realized; (ii) MiMedx failed to disclose its financial ties to physicians, as required by federal law; (iii) the company lacked adequate internal controls over financial reporting; and (iv) as a result of the foregoing, MiMedx shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
If you are a member of the class described above, you may no later than April 25, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com. If you would like additional information about the suit, please fill out the attached form as promptly as possible and return it by fax to 610-667-7056, or by mail in the enclosed envelope.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706 or by e-mail at info@ktmc.com