Feb 20, 2018 - Economy
MiMedx stock craters on internal probe
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The stock price of MiMedx plummeted 35% Tuesday morning after the company, which sells products for burns and wound care, said it was postponing the release of its 2017 financial results due to an internal investigation of its sales practices.
Why it matters: Short sellers like Marc Cohodes have long alleged MiMedx fraudulently inflated its sales numbers. Delaying the financials, at a minimum, is a public-relations disaster and could indicate deeper trouble from government auditors.
Go deeper: MiMedx CEO Pete Petit is a big backer of President Trump and former health secretary Tom Price, and Petit's feud with short sellers reached a boiling point this past January.
