SAN DIEGO & MARIETTA, Ga.--(BUSINESS WIRE)-- Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of MiMedx Group, Inc. (NasdaqCM: MDXG) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between March 7, 2013 and February 19, 2018. MiMedx, a biopharmaceutical company, develops and markets regenerative biologics utilizing human placental tissue allografts with patent-protected processes for various sectors of healthcare.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/mimedx-group-inc-mar-2018
MiMedx Accused of Engaging in Fraudulent Revenue Scheme
According to the complaint, in December 2016, two former MiMedx employees filed a complaint against the company alleging MiMedx fired them for reporting fraudulent revenue recognition practices. The employees alleged that MiMedx inappropriately recorded sales of products that hadn’t yet been filled—otherwise known as channel stuffing—in order to fraudulently recognize revenue in its financial statements before the revenue had been realized and earned. On February 20, 2018, after months of denying that it had engaged in a fraudulent revenue scheme, MiMedx revealed that it hired legal and accounting advisors to conduct an internal investigation regarding certain sales and distribution practices at the company. As a result, the company postponed the release of its financial results and the filing of its 2017 Form 10-K. On this news, MiMedx's stock plunged over 39% to close at $8.75 per share on February 20, 2018, and continues to decline.
MiMedx Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180301006542/en/
Source: Robbins Arroyo LLP