The shares MiMedx Group climbed after announcing that the Department of Justice (DOJ) declined to intervene in the qui tam action against the company at this time.
The stock price of the company increased more than 9% to $11.16 per share at the time of this writing, around 1:02 in the afternoon in New York.
Since the financial crisis, Warren Buffett's Berkshire Hathaway has had significant exposure to financial stocks in its portfolio. Q1 2021 hedge fund letters, conferences and more At the end of March this year, Bank of America accounted for nearly 15% of the conglomerate's vast equity portfolio. Until very recently, Wells Fargo was also a prominent Read More
MiMedx cooperated with OIG’s investigation
A qui tam action is a type of a civil lawsuit filed by a whistleblower under the False Claims Act. Under the law, a whistleblower will be rewarded if his or her qui tam case recovers funds for the government.
According to MiMedx, the qui tam case prompted the Department of Health and Human Services, Office of Inspector General (OIG) to issue more subpoena to the company a few months ago.
MiMedx responded to subpoena and cooperated extensively with the government. The company provided more than 100,000 lines of electronic data to the OIG. MiMedx also took the initiative to expedite the investigation process. The company quickly produced responsive documents needed by the OIG in its investigation.
MiMedx CEO says company did not engage in wrongdoing
MiMedx Chairman and CEO Parker Petit said, “We are pleased that the government has declined at this time, to intervene in the qui tam action. We appreciate the expediency, professionalism and thoroughness with which the OIG conducted its investigation.”
Petit added that MiMedx will continue to cooperate with the government in any other requests. He is confident that the company did not engage in wrongdoing that supports a qui tam action.
Furthermore, Petit emphasized that the investigation allowed them to evaluate all aspects of MiMedx compliance programs. The inquiry also reaffirms the effectiveness of the company’s policies and standards.
Moreover, Petit said they are pleased that MiMedx maintained a culture of compliance continually and diligently stressed adherence within the company.
“We welcome the opportunity for our industry practices to be put under the microscope. Our experience needs to serve as a catalyst for all of our industry to ensure all practices are beyond reproach,” said Petit.
MiMedx is an integrated developer, processor and marketer of patent protected regenerative biomaterial products and bio-implants processed from human amniotic membrane.