The Cloud of Uncertainty Thickens Over MiMedx As Auditor Quits

The hits just keep coming for MiMedx Group this year. Ernst & Young (EY), the firm hired to audit the company's financial statements for the past two years, has resigned after advising the company that the internal controls necessary for MiMedx to develop reliable financial statements do not exist. EY told MiMedx that the firm is unable to rely on representations from the current interim CEO and interim CFO because they, in turn, would have needed to rely on representations from certain legacy management personnel still in positions that could affect what is reflected in the company's books and records. In February, MiMedx postponed the release of its financial results and the filing of its Form 10-K for 2017 and reported that independent legal and accounting advisors were investigating allegations regarding the company's sales and distribution practices. That investigation eventually led to the resignations of CEO Petit and COO Bill Taylor, as well as the resignations of former CFO Michael Senken, and former corporate controller and treasurer John Cranston. The company also drew the unwanted attention of both the Securities and Exchange Commission and the Department of Justice. Later, the company's board announced that these four separations were to be treated as terminations "for cause," and that the former executives would have to forfeit equity and incentive awards they received in connection with their resig...
Source: MDDI - Category: Medical Devices Authors: Tags: Business Source Type: news