Disclosure Insight® Report MiMedx Group, Inc. – MDXG $97.14, Mkt Cap $114.58 B: Previously Disclosed – and settled – SEC Investigation(s) is Again Confirmed as On-going.
In-Depth Update on MiMedx’s Many Investigations
Anyone paying even the scantest attention to financial Twitter over the past couple years bore witness to the very public beating administered to the senior management of MiMedx Group by well-known short seller, Marc Cohodes. Accusations centered around bribing customers, illegal sales practices, falsely recognizing revenue, as well as lying to the company’s board and auditors. There was an array of investigations, many still lingering today.
MiMedx paid a fine and settled with the SEC in November 2019. The former CEO and the COO were also indicted in Nov-2019. Both were also eventually convicted of securities fraud and sentenced to prison. All the way up to his sentencing, former CEO, Parker Petit, whined about “illegal short-sellers”. He even paid $750,000 to a conservative activist with strong ties to Donald Trump to try to secure a pardon from the outgoing president. That effort failed and Mr. Petit remains in prison.
But what’s happened to the company since? More importantly, why does the SEC keep confirming the existence of ongoing enforcement proceedings, three times now since the Nov-2019 settlement?
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