MARIETTA, Ga., Dec. 15, 2016 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, today responded to the frivolous lawsuit filed against the Company by two former employees and the press release issued by these individuals.
Parker H. "Pete" Petit, Chairman and CEO, commented, "This process began with these individuals making allegations which I viewed as not factual and fallacious. In accordance with our corporate policies, we submitted the allegations to our Board of Directors to thoroughly review the issues. However, in the process of doing that investigation, we found out that these two individuals had been selling competitive products and other products for over a year into our accounts. Therefore, earlier this week, their employment was terminated and lawsuits filed against them for their breach of their duty of loyalty and contractual obligations to the Company."
Petit added, "It is my opinion that this situation developed because these two individuals wished to leave our employment and force us into waiving their non-competition obligations. Since the Company found they had already breached these agreements for over a year, the Company had no choice but to terminate their employment. The other allegations that are made in their press release are also not factual and at the point of being ridiculous. Mr. Kruchoski was counseled numerous times over his desire to not have oversight of his management and sales activities, and we now know that was because of these types of improper activities."
MiMedx® is an integrated developer, processor and marketer of patent protected and proprietary regenerative biomaterial products and bioimplants processed from human amniotic membrane and other human birth tissues, such as amniotic fluid, umbilical cord and placental collagen, and human skin and bone. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human amniotic membrane utilizing our proprietary PURION® Process, to produce a safe and effective implant. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of amniotic tissue, having supplied over 700,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare.
Safe Harbor Statement
This press release includes statements that look forward in time or that express management's beliefs, expectations or hopes. Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, the Company's beliefs regarding the motivations behind the allegations made against it. These statements are based on current information and belief, and are not guarantees of future performance. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the normal risks of litigation, and the risk factors detailed from time to time in the Company's periodic Securities and Exchange Commission filings, including, without limitation, its 10-K filing for the fiscal year ended December 31, 2015, and its most recent Form 10Q filing. By making these forward-looking statements, the Company does not undertake to update them in any manner except as may be required by the Company's disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.
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SOURCE MiMedx Group, Inc.