Judge William M. "Billy" Ray II. (Photo: John Disney/ALM) Ga. Federal Judge Tosses Securities Class Action Against MiMedx, Jailed CEO Pete Petit
A federal judge in Atlanta said the lead plaintiff could not show that its lost stock value was caused by revelations of accounting fraud at the Marietta-based biotech company, whose former CEO and COO are now in prison.
April 08, 2021 at 03:12 PM
4 minute read
A federal judge tossed out a securities class action against Marietta, Georgia-based biotech firm MiMedx, two former executives and an accounting firm, ruling that the lead plaintiff could not show that revelations about the company's inflated revenue claims caused its shares' value to plummet before they were sold.
The ruling comes more than a month after former CEO Parker "Pete" Petit, 81, and former chief operations officer William Taylor were each sentenced to a year in federal prison after being found guilty of accounting fraud following a four-week trial in New York.
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