MiMedx Files Lawsuit Against The Capitol Forum
Published: Sep 21, 2017
MARIETTA, Ga., Sept. 21, 2017 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts and patent-protected processes for multiple sectors of healthcare, announced today that it is filing a lawsuit for libel, slander, defamation, false light, tortious interference with business relations, and violations of the Lanham Act against The Capitol Forum.
On September 7th, The Capitol Forum publicized a news article with the innuendo that the Department of Veterans Affairs (VA) was investigating MiMedx because a Freedom of Information Act (FOIA) document indicated the VA was looking at documents related to MiMedx. In fact, MiMedx approached the VA with this information earlier this year. The Company explicitly informed The Capitol Forum that, to its knowledge, MiMedx was not the target of any investigation; yet, The Capitol Forum still published its confusing and misleading article.
The Company's allegations in its lawsuit are based on statements made by The Capitol Forum to MiMedx shareholders that were untrue. The Company further alleges that The Capitol Forum made other statements that knowingly placed MiMedx in a false light. The Company also alleges that The Capitol Forum conspired with other persons yet to be identified who had a financial interest in driving down the price of MiMedx's stock.
Parker H. "Pete" Petit, CEO, stated, "We believe that The Capitol Forum was acting as a 'shill' for short sellers by posing as an investment advisor through publishing information and providing opinions that could negatively impact MiMedx and its shares. Publishing an 'article' and then having professional sales people reach out to our shareholders by email and phone, encouraging them to call them back to 'learn more' is not a typical practice of a media outlet. The Capitol Forum's role was to publicize negative information about the Company, which the short sellers used to drive the price of our stock down, even in the face of very positive performance by the Company. We provided a significant amount of positive information as well as information providing different viewpoints on the Company to The Capitol Forum. They did not publish that information and instead only published the negative information. In some instances there were outright lies, and in other instances there was negative innuendo, but it all had the same goal, which was to discredit MiMedx. This type of behavior is unlawful."
MiMedx encourages shareholders to read carefully all of the Company's detailed press releases and compare those to what appears to be orchestrated short selling activity.
MiMedx® is the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human placental tissue utilizing our proprietary PURION® Process among other processes, to produce safe and effective allografts. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of placental tissue, having supplied over 1,000,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare. For additional information, please visit www.mimedx.com.
Important Cautionary Statement
This press release includes forward-looking statements. These statements also may be identified by words such as "believe," "except," "may," "plan," "potential," "will" and similar expressions, and are based on our current beliefs and expectations. Forward-looking statements are subject to significant risks and uncertainties, and we caution investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the risk that different or additional facts may be discovered that change conclusions, and the risks of litigation. For more detailed information on the risks and uncertainties, please review the Risk Factors section of our most recent annual report or quarterly report filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and we assume no obligation to update any forward-looking statement.
SOURCE MiMedx Group, Inc.