Shares of MiMedx Group (OTC:MDXG), a company focused on regenerative medicine, fell as much as 20% today after federal prosecutors charged three healthcare workers with accepting bribes from the company. Shares recovered and closed the day down about 7.5%.
Bloomberg today reported that federal prosecutors allege that MiMedx paid bribes to three healthcare workers at the Veterans Affairs Department to promote the use of the company's products. The alleged bribes included direct payments, meals, trips, and speaking fees.
It is worth noting that neither MiMedx nor any of the company's workers have been directly charged and the company did not comment for the Bloomberg article. Three people have been indicted, according to Bloomberg, but that is not a finding of guilt. However, given all of the other drama going with the company right now, it is understandable why traders are shooting first and asking questions later.
Today's news should only add fuel to the fire that is raging against this company.
I'd advise potential bulls to steer clear of this troubled company and focus their attention on more promising opportunities.