MiMedx: Ouster of top brass was for cause

MiMedx (NSDQ:MDXG) said yesterday that the ouster this summer of four top executives was “for cause” after a probe into its accounting practices turned up “conduct detrimental to the business or reputation of the company.”
Marietta, Ga.-based MiMedx makes regenerative and therapeutic biologics using human placental tissue allografts. Last July CEO Parker Petit and president & COO William Taylor were ousted amid a board-directed independent investigation that had already prompted the departure of CFO Michael Senken and treasurer John Cranston in June.
At the time, MiMedx said it would restate all of its earnings reports going back to 2012 and was cooperating with U.S. Securities & Exchange Commission and Justice Dept. investigations into the matter.
Today MiMedx said that all four of the departures of its top brass were for cause, triggering the forfeit of all equity and incentive awards for the executives and Petit’s resignation from the board today.
“In addition, the board and the compensation committee have determined that action shall be taken to recover compensation previously paid to the separated employees … based upon the final results of the company’s restatement of its previously issued consolidated financial statements and financial information,” MiMedx said.
“The board is taking the necessary steps to prepare MiMedx for its next chapter and a stronger future,” chairman Charles Evans said in pr...

Source: Mass Device - September 21, 2018 Category: Medical Devices Authors: Brad Perriello Tags: Featured Legal News Regenerative Medicine Wall Street Beat MiMedx Group Inc. Source Type: news