SAN DIEGO--(EON: Enhanced Online News)--Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/mimedx/) today announced that a class action has been commenced in the United States District Court for the Northern District of Georgia on behalf of purchasers of MiMedx Group, Inc. (“MiMedx”) (NASDAQ:MDXG) stock during the period between March 7, 2013 and September 4, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 9, 2013. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/mimedx/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges MiMedx and certain of its officers and directors with violations of the Securities Exchange Act of 1934. MiMedx is a manufacturer of patented regenerative biomaterial products that are, in essence, designed to treat inflammation and help wounds heal.
The complaint alleges that on September 4, 2013, the U.S. Food and Drug Administration (“FDA”) posted an “Untitled Letter,” dated August 28, 2013, on its website describing regulatory violations committed by the Company. The letter concerned MiMedx’s amniotic/chorionic-based products, including AmnioFix Injectable, AccelShield Injectable, and EpiFix Injectable, all of which are intended for use in reducing inflammation and scar tissue formation, as well as for enhancing soft tissue wound healing.
Among other things, the Untitled Letter stated that because these products were micronized – and thus had the original relevant characteristics of the structural tissue altered – they were drugs. Because MiMedx did not possess a valid biologics license, the Untitled Letter concluded the Company was unable to lawfully market these products. It stated that “[n]one of the amniotic/chorionic-based products described in this letter are the subject of an approved biologics license application . . . , nor are there [investigational new drug applications] in effect for any of these products. Based on this information, we have determined that your actions have violated the [Federal Food, Drug, and Cosmetic] Act and the [Public Health Service] Act.”
The FDA’s disclosure of the Untitled Letter – which the Company did not disclose during the period between August 28, 2013 and September 4, 2013 – caused a 36% drop in the price of MiMedx common stock, which fell $2.21 per share to close at $3.85 per share on September 4, 2013, a decline of 48% from the stock’s Class Period high.
According to the complaint, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were are follows: (a) MiMedx did not possess the necessary licensing to manufacture certain of its products; (b) the Company was manufacturing certain of its products unlawfully and in violation of FDA rules and regulations; (c) at all relevant times, MiMedix’s revenues from these products were substantially and materially threatened due to the Company’s lack of licensure; (d) because a portion of its revenues were subject to termination, MiMedx’s revenue guidance issued during the Class Period lacked a reasonable basis when made; and (e) as a result of the foregoing, defendants’ statements regarding the Company’s financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.
Plaintiff seeks to recover damages on behalf of all purchasers of MiMedx stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions and actions involving financial fraud.