June 10, 2019

DOJ and SEC investigate former CEO who allegedly retaliated against whistleblowers

MiMedx Group, Inc., an advanced wound care and biologics maker, announced in a regulatory filing on June 10, 2019, that its former Chief Executive Officer and Chairman of the Board is under investigation by the US Department of Justice and the Securities and Exchange Commission.  In press statements and filings with the SEC, the company had previously reported the findings of an internal investigation into the former CEO’s conduct. According to the company, the investigation, which was conducted under the direction of the Audit Committee with the assistance of outside counsel and an external forensic accounting firm, revealed that the former CEO had made false and misleading statements to the Board and the SEC, used side deals to manipulate the company’s revenue recognition, and engaged “in a pattern of taking action against employees who raised concerns about the Company’s practices, including reassignment, discipline or termination,” and failed to investigate the whistleblowers’ concerns.

Form 8-K