Viceroy: MiMedx's appointment of Alvarez, Marsal 'conflict of interest'
In an open letter to MiMedx, Viceroy Research said: "On July 2, MiMedx announced the resignation of MiMedx CEO and Founder, Parker H. Petit, and the appointment of David Coles, a Managing Director of Alvarez & Marsal, as the company's interim CEO.The appointment of Mr . Coles follows MiMedx's engagement of KPMG and King & Spalding , who we understand have been tasked , amongst other things,with conducting an independent internal investigation into MiMedx sales practices. Viceroy understands that a key element of these internal investigations concerns MiMedx's conduct with the United States Department of Veteran's Affairs; specifically,the allegations of channel stuffing and the subsequent indictment of DVA physician s utilizing MiMedx products. Given the depth of investigations occurring at MiMedx relating to the company's conduct with the DVA, Viceroy believe the appointment of Alvarez & Marsal represents anirremediable conflict of interest to MiMedx's ongoing internal investigations , and to the investigations we understand are ongoing within the DVA and other federal regulatory entities. We have addressed a separate letter to the Department of Justice and the DVA's ethics committee outlining what we believe is a serious conflict of interest and undue influence within the DVA of several parties. Further, we believe that it is irresponsible that this group, when exposed by journalists, was saved from a congressional hearing by longtime friend of former MiMedx CEO Petit, Senator Jonny Isakson, who has benefited greatly from donations from MiMedx and Petit."