BOSTON and LOS ANGELES and WASHINGTON, Dec. 6, 2018 /PRNewswire/ -- "After spending tens of millions of Company dollars on lawyers, accountants, and 'strategic consultants,' the MiMedx Board of Directors and Interim management today announced the lay-offs of nearly a quarter of the sales workforce and the abrupt resignation of its outside auditor without adequate justification," said Quinn Emanuel attorney Bill Weinreb. Weinreb continued, "These extreme measures illustrate how the current Board of Directors and Interim managers have mismanaged a company that former Chairman and CEO Parker H. "Pete" Petit and former President and COO Bill Taylor built into the 5th fastest growing public company in the U.S."
Weinreb added, "the Company's announcements do not hold up under close scrutiny. For example, the Company announced that it had 'established an independent compliance function' even though the Company has already had for many years an independent compliance function that reported directly to the Audit Committee of the Board of Directors." Weinreb commented, "Similarly, the current Chief Compliance Officer, Mark Graves, was not hired by the Board or current management, as today's announcements suggest, but rather by former CEO Petit and former COO Taylor before their departure from the Company in June 2018. And today's announcement of a long-range strategic plan likewise suggests that having such a plan is a new management initiative when in fact the Company has for years had long-range strategic plans that were updated annually and approved by the Board of Directors."
Former CEO Petit commented, "Laying off so many members of the best-trained sales force in this healthcare sector makes little economic sense. The well-known changes in certain insurers' reimbursement policies for certain industry product lines will not prevent most MiMedx salespeople from generating an operating profit given the Company's excellent margins. These layoffs are a needless waste of talent and a huge blow to morale. I strongly urge the Company to rethink these extreme measures."
"EY's abrupt and unexplained resignation underscores the need for an independent investigation of the Audit Committee's role in the revenue-recognition and other matters currently under investigation, and to determine whether the Committee members have acted reasonably, with due care, and in the Company's best interests." Weinreb concluded, "EY's last-minute abdication of its audit responsibilities raises questions about whether EY mishandled its diligence prior to accepting the engagement and whether the Audit Committee has competently supervised the annual audit."
Quinn Emanuel is a 780+ lawyer business litigation firm—the largest in the world devoted solely to business litigation and arbitration with 22 global office locations. Firm lawyers have tried over 2,600 cases, winning 88% of them. When representing defendants, Quinn Emanuel's trial experience gets better settlements or defense verdicts. When representing plaintiffs, Quinn Emanuel lawyers have won over $60 billion in judgments and settlements. Quinn Emanuel has also obtained five 9-figure jury verdicts, thirty-four 9-figure settlements, and fifteen 10-figure settlements. FTI Consulting named Quinn Emanuel the biggest litigation firm in the world. The American Lawyer named Quinn Emanuel the top IP litigation firm in the U.S. and the firm as one of the top six commercial litigation firms in the country. Four times in the last 5 years, we were voted as one of the four "most feared" firms by General Counsels at Fortune 500 companies — the lawyers they "least like to see" on the other side. The UK legal periodical, The Lawyer named us "International Firm of the Year." Law360 selected us as Antitrust, Appellate, Banking, Class Action, Insurance, Product Liability, IP, White Collar, and Trials "Practice Groups of the Year." Managing IP twice recognized us as having the "Best ITC Litigation Practice" and honored us with the "Patent Contentious West" award. Legal Business has named us "US Law Firm of the Year" three times, and our German offices have been named both IP Litigation and Patent Litigation Firm of the Year by JUVE, Germany's most prestigious legal publication. Global Investigations Review, a leading legal periodical covering global white collar investigations, named us the "Most Impressive Investigations Practice of the Year." Global Arbitration Review named us the 11th best arbitration practice in the world. Further information is available at www.quinnemanuel.com.
SOURCE Quinn Emanuel Urquhart & Sullivan, LLP