With the arrival of Wright in May 2019, the company accelerated the process of working with auditors and regulators to resolve legal and financial issues created by the previous management (see ‘History’).
Wright also began a cultural and financial turnaround, assembling a new senior management team by August 2019 to instill “transparency, truthfulness, and timeliness” in communications and business dealings.
As of November 2020, MiMedx had supplied more than two million allografts for skin grafts to address persistent wounds such as diabetic foot ulcers that often result in amputation, burns, and other urgent health issues.
[8] In August 2013, the FDA stated the products weren't Section 361 eligible, making them unlawful for sale until meeting more stringent standards.
[17] However, after this reclassification, according to Bloomberg, Georgia Senator Johnny Isakson made at least eight calls on behalf of MiMedx and Petit to the VA, the FDA and the FBI.
Petit reported to MiMedx executives that this wouldn't happen, as they had been talking to the VA and were "having our senator make some phone calls", referring to Isakson.
[17] Beginning in 2017, investors and short-sellers such as Marc Cohodes started publicizing fraud, accusing the company of channel stuffing.
[26] The company delayed its earnings announcement in February 2018 and stated it wasn't aware of any Justice Department investigations.
[23] In 2018, the Wall Street Journal reported that the company considered the 2013 Physician Payments Sunshine Act not applicable to their business as they were part of FDA Section 361.
The company stated that Petit, Taylor, Senken, and former Controller John Cranston had ordered the installation of a secret video surveillance system to expose and undermine whistleblowers, called Project Snow White.
They also stated the four had "repeatedly misled or withheld information" from auditors, including Petit in a sworn deposition and Senken in a letter to the SEC.
[29] In November 2019, MiMedx settled a SEC lawsuit for "wide-ranging fraud" to inflate revenue in quarterly and annual filings, paying $1.5 million.
[32][24][33] Bloomberg stated a dozen "current and former executives and employees of his companies describe a hard-charging leader -- one who didn’t dwell on the rules as he pursued revenue growth".
[36] On April 21, 2020, MiMedx announced they had received $10 million in federally backed small business loans, the maximum allowable amount, as part of the Paycheck Protection Program.