MARIETTA, Ga., March 1, 2017 /PRNewswire/ — MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human placental tissue allografts and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, announced today that the Audit Committee of its Board of Directors has completed its investigation and found no merit regarding allegations of wrongdoing that were made by two former employees against the Company.
As previously disclosed, the Company terminated two employees in December 2016 when it was discovered that the employees were selling products for other companies, some of which were competitive with the Company’s products, in violation of their contractual and common law duties to MiMedx. Following their terminations, MiMedx filed suit against these employees, and the employees in turn filed a wrongful termination suit against MiMedx asserting various allegations. Subsequently, the former employees dismissed their lawsuit and then brought wrongful terminations claims in different venues where the Company has filed suits against them.
The Audit Committee worked closely with independent counsel to conduct an extensive investigation into the claims alleged by these former employees. The Audit Committee has completed its investigation and confirmed there is no credible evidence of any wrongdoing on behalf of members of MiMedx management. The lawsuits with these former employees are ongoing and management continues to believe that the employees’ legal claims and accompanying allegations are without merit.
The Audit Committee’s findings have been submitted to and approved by the Company’s Board of Directors. The Audit Committee’s investigation determined that the Company has appropriately recognized revenue and found no credible evidence to indicate that any changes to the Company’s previously issued financial statements are necessary in light of the former employees’ allegations.