MARIETTA, Ga., Dec. 19, 2017 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts and patent-protected processes for multiple sectors of healthcare, announced today that the Company has agreed to a confidential lawsuit settlement from one former employee.
MiMedx has reached a mutually agreeable settlement in its lawsuit with former employee, William T. Mills, who voluntarily resigned from MiMedx in January 2017. In its suit, MiMedx alleged that Mills breached his restrictive covenants and his duty of loyalty to MiMedx by selling another company's medical products while employed by MiMedx, and continued to breach his restrictive covenants after he voluntarily left MiMedx's employ. This lawsuit was a dispute solely over Mr. Mills' MiMedx employment agreement, and no other allegations have been made by either party.
In addition to an undisclosed monetary settlement, other settlement terms were reached. In this regard, Mills has agreed not to sell any products of his current employer to any MiMedx customer serviced by Mills for nine months.
Mills also acknowledges and confirms that he made no allegations of "channel stuffing" by MiMedx in this lawsuit. Mills stated, "I have no knowledge of the agreements or payment terms between MiMedx and its customers. I also do not know or have any way of knowing of how sales of products were accounted for by the Company in its financial statements. To my knowledge, the vast majority of the MiMedx products which were sold into my accounts were used and were not returned. MiMedx makes an excellent product. I look forward to continuing my employment with my current employer."
Parker H. "Pete" Petit, CEO, said, "We are pleased to have settled this lawsuit with Mr. Mills. The prosecution of our other lawsuits is critical to ensuring the appropriate legal remedies and to rectify the misconduct committed by those individuals. Mr. Mills did not bring any claims alleging channel stuffing, as other employees have, and he does not have enough knowledge of accounting matters to make such an allegation. We are glad we were able to resolve this matter amicably with Mr. Mills. We look forward to achieving appropriate outcomes from our legal actions against those other individuals."
MiMedx® is the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human placental tissue utilizing our proprietary PURION® Process among other processes, to produce safe and effective allografts. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of placental tissue, having supplied over 1,000,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare. For additional information, please visit www.mimedx.com.
Important Cautionary Statement
This press release includes forward-looking statements, including statements regarding potential outcomes of legal actions. These statements also may be identified by words such as "believe," "except," "may," "plan," "potential," "will" and similar expressions, and are based on our current beliefs and expectations. Forward-looking statements are subject to significant risks and uncertainties, and we caution investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the risk that different or additional facts may be discovered that change conclusions, and the risks of litigation. For more detailed information on the risks and uncertainties, please review the Risk Factors section of our most recent annual report or quarterly report filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and we assume no obligation to update any forward-looking statement.
SOURCE MiMedx Group, Inc.