MiMedx Group, Inc. Sued by Investor
Robbins LLP announce that an investor of MiMedx Group, Inc. (NASDAQ: MDXG) has filed a complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers violated the Securities Exchange Act of 1934 from March 15, 2013 to September 4, 2013 (the “Class Period”). MiMedx, together with its subsidiaries, operates as an integrated developer, manufacturer, and marketer of patent protected regenerative biomaterial products and allografts processed from human amniotic membranes.
MiMedx Accused of Making False and Misleading Statements
According to the complaint, MiMedx issued materially false and misleading statements about whether its AmnioFix Injectable product required U.S. Food and Drug Administration (“FDA”) approval to be manufactured and marketed. Specifically, on March 15, 2013, in its annual report for the fiscal year ended December 31, 2013, filed with the U.S. Securities and Exchange Commission (“SEC”), MiMedx falsely stated that its products did not require approval from the FDA because of a purported exemption under the Public Health Service Act. The company made similar statements in its quarterly report for the second quarter ended June 30, 2013, filed with the SEC on August 8, 2013.
MiMedx Stock Drops on Announcement of Letter from the FDA Asserting Violations of the Public Heath Service Act
On September 4, 2013, MiMedx confirmed it had received a letter from the FDA stating that the company violated the Public Health Service Act by unlawfully manufacturing drugs and marketing unapproved biologics products without a proper and valid license. The lawsuit asserts that this adverse information caused the price of MiMedx stock to fall as much as 70%, thereby damaging investors.
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