MiMedx announces $1.5M settlement with SEC
MiMedx Group announced that it has finalized a settlement with the Securities and Exchange Commission, resolving a previously disclosed investigation into the company's financial accounting practices. The company has agreed to settle with the SEC, without admitting or denying the SEC's allegations, by consenting to the entry of a final judgment, subject to court approval, that permanently restrains and enjoins the company from violating certain provisions of the federal securities laws. As part of the resolution, the company also agreed to pay a civil penalty in the amount of $1.5M. The settlement, if approved by the court, will conclude, as to the company, the matters alleged by the SEC in its complaint. The resolution announced today relates only to the previously disclosed investigation by the SEC, the company said. As previously disclosed, there is a parallel criminal investigation by the United States Attorney's Office for the Southern District of New York involving matters similar to those investigated by the SEC. "The company is cooperating fully with that ongoing criminal investigation," MiMedx stated. CEO Timothy Wright added, "We are focused on our future as a mission-centered healthcare company and are committed to continued implementation of strong financial systems and independent oversight controls, which reflect both sound business practices and an ethical culture. We appreciate the SEC's recognition of our cooperation and remediation efforts as part of this settlement."