Block & Leviton LLP Announces It Has Filed A Class Action Against MiMedx Group, Inc. (MDXG)
BOSTON, Feb. 24, 2018 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a securities litigation firm representing investors nationwide, announces that it has filed a class action against MiMedx Group, Inc. ("MiMedx" or the "Company") (NASDAQ: MDXG) and certain of its officers for violations of the federal securities laws.
If you purchased MiMedx shares between March 7, 2013 through February 19, 2018 inclusive (the "Class Period") and wish to serve as a lead plaintiff, you must move the Court no later than April 25, 2018. As a member of the class, you may seek to file a motion to serve as a lead plaintiff or take no action and remain an absent class member. If you wish to become involved in the litigation or have questions about your legal rights, you are encouraged to contact attorney Bradley Vettraino at (617) 398-5600, by email at [email protected], or by visiting www.blockesq.com/mdxg.
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, filed in U.S. Federal court for the Northern District of Georgia alleges that throughout the Class Period, 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.
Confidentiality to whistleblowers or others with information relevant to this investigation is assured.
Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.
The court in which the action is pending is located at 75 Ted Turner Drive, SW, Atlanta, GA 30303.
This notice may constitute attorney advertising.
CONTACT:
Block & Leviton LLP
Bradley J. Vettraino
155 Federal Street, Suite 400
Boston, MA 02110
(617) 398-5600
[email protected]
SOURCE Block & Leviton LLP
Share this article