Shares of MiMedx were pummeled this morning to as low as $6.05 and now sit around $6.84 per share, down about 12.26% on the session, heading into the last 30 minutes of trading on news reported by Bloomberg that the company was under DOJ investigation for revenue recognition practices and its business with the government.
Noted critic of the company, short seller Marc Cohodes is set to go live at 3:30PM EST with a Periscope video reaction to the news.
Here is the live video, and video replay:
Bloomberg stated earlier today,
Biotech firm MiMedx Group, which jolted investors last week by delaying its year-end earnings announcement, is under U.S. Justice Department scrutiny related to a pair of business practices, according to people familiar with the matter.
Federal authorities are investigating whether the Marietta, Georgia-based company overcharged the government for its tissue-repair products, said a person with knowledge of the matter. The Justice Department is also looking into MiMedx’s distribution practices -- including whether it inappropriately booked sales of products that hadn’t been ordered, a practice known as channel stuffing -- according to several others familiar with that probe.