Short sellers impersonate MiMedx Executives to drive down stock price
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, warned today that certain individuals or entities not associated with the Company are establishing fake email accounts to impersonate executives at the Company.
The Company is aware of at least one instance in which emails were sent by someone using the CEO’s name and a Gmail account that had not, in fact, been set up by that Company executive. The emails were sent to an analyst who reports on the Company. The Company warns that any emails purporting to be from Company executives from non-MiMedx email accounts should be viewed skeptically. The Company encourages anyone who has received a suspicious email to notify the Company. This type of impersonation is quite unusual, and it is a crime. The Company has turned the investigation over to the authorities.
Parker H. “Pete” Petit, Chairman and CEO, commented, “We believe this activity is related to the recent short seller attacks on the Company. This particular group of short sellers continues to resort to ridiculous and unscrupulous means to attempt to do damage to MiMedx. Of course, their ultimate goal is to depress the price of our stock. However, by impersonating me in emails to our analysts, with comments that create insecurity relative to our Company’s performance or my ethics and integrity, is reprehensible and unlawful. We have also seen other indications of unlawful activity. The Company will continue to quietly go about its investigation of all these issues in a professional manner, and if and when we find violations of laws or regulations, they will be turned over to the proper authorities.”
Petit continued, “Within reason, we will continue to update our website with facts that refute some of the allegations. However, as we stated, the allegations are becoming quite bizarre and are not relevant to any MiMedx related business processes or relationships. Reasonable professionals trying to make points that regulators will review will present credible information from credible sources. That has not happened in our case.”