MiMedx Securities Fraud Lawsuit

In a letter dated August 28, 2013, the FDA asserted that MiMedx violated the Food, Drug, and Cosmetic Act and the Public Health Service Act by failing to obtain proper licenses needed to sell certain products used to reduce inflammation and scar tissue formation, as well as enhance wound healing of soft tissues. Such FDA licenses are only issued after a showing of safety and efficacy for the product’s intended use.

On September 4, 2013, news of these alleged FDA violations became public, causing shares of MiMedx to lose 36.5 percent of their value. MiMedx shares ended the trading day down $2.21 per share and financial analysts estimate that the company’s shareholders lost approximately $213 million in market value.

The securities attorneys at Morgan & Morgan are investigating whether MiMedx executives had prior knowledge that the company may have needed licenses from the FDA to sell its products. In addition, our attorneys are reviewing whether MiMedx had proper policies and procedures in place to ensure that the company was in compliance with the FDA’s licensing requirements.

You may be able to participate in the MiMedx shareholder litigation if you purchased shares of MiMedx common stock between October 30, 2012 and September 4, 2013. (Please note that this prospective class period may change as the litigation progresses.)

In addition, if you are a current or former MiMedx employee who owns MiMedx stock through a company-sponsored 401(k) plan or employee stock purchase plan, you may be able to participate in a securities fraud or breach of fiduciary duty lawsuit filed under the Employee Retirement Income Security Act (“ERISA”).

Furthermore, other investors, such as swing traders and purchasers of options positions in MiMedx who suffered losses, may also be able to participate in this class action litigation.

If you are an investor in MiMedx common stock or options contracts involving MiMedx, please complete our free case review form to learn more about how our class action lawyers may be able to help you recover compensation through a potential securities fraud lawsuit.