MiMedx probe finds execs spied on potential whistleblowers with secret video
MiMedx Group Inc. (MDXG) said late Thursday an internal investigation revealed that now-former executives spied on employees to discredit whistleblowers. The wound-care products company's stock was delisted from the Nasdaq in November (http://www.marketwatch.com/story/mimedx-stock-plunges-after-receiving-delisting-notice-from-nasdaq-2018-11-07) after the company's chief executive and chief operating officer resigned in July (http://www.marketwatch.com/story/mimedx-ceo-and-coo-resign-as-investigation-of-accounting-continues-2018-07-02) during an internal audit. Late Thursday, the company said the audit uncovered 2,750 hours of video footage from a secret surveillance system installed under orders of Parker Petit, the company's former chairman and CEO. The audit found that Petit, former COO William Taylor, former Chief Financial Officer Michael Senken, and former Controller John Cranston knew about revenue manipulation practices related to deals with its largest distributor. The company also said Petit and Taylor launched an internal investigation named "Project Snow White," which included secret surveillance, to root out potential whistleblowers and employees who were concerned about the company's practices.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 23, 2019 17:19 ET (21:19 GMT)
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