MiMedx Sues Capitol Forum

MiMedx Group (MDXG), a biopharmaceutical company, said Thursday morning that it has filed a lawsuit for libel, slander, defamation, false light, tortious interference with business relations, and violations of the Lanham Act against The Capitol Forum.

On Sept. 7, The Capitol Forum publicized a news article with the innuendo that the Department of Veterans Affairs (VA) was investigating MiMedx because a Freedom of Information Act (FOIA) document indicated the VA was looking at documents related to MiMedx, the company said in a statement Thursday. MiMedx shares have lost more than one third of their value since then.

“In fact, MiMedx approached the VA with this information earlier this year. The company explicitly informed The Capitol Forum that, to its knowledge, MiMedx was not the target of any investigation; yet, The Capitol Forum still published its confusing and misleading article,” MiMedx said in the statement.

The company’s allegations in its lawsuit are based on statements made by The Capitol Forum to MiMedx shareholders that were untrue.

The company further alleges that The Capitol Forum made other statements that knowingly placed MiMedx in a false light.

The company said Thursday it also alleges The Capitol Forum conspired with other persons yet to be identified who had a financial interest in driving down the price of MiMedx’s stock.

Shares of MiMedx continued their two-week slide and were trading 8.4% lower at $11.30 at 10:08 a.m. in New York on Thursday.

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