Company goes after short seller

[mnholdem]

MiMedx Exposes Content of a Short Seller Website Dedicated to Posting Defamatory and False Information About the Company
Published: Oct 30, 2017

Source: www.biospace.com/article/releases/mimedx-exposes-content-of-a-short-seller-website-dedicated-to-posting-defamatory-and-false-information-about-the-company/

Excerpts:

MARIETTA, Ga., Oct. 27, 2017 /PRNewswire/ -- MiMedx (NASDAQ: MDXG), the leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare, announced today that the Company has become aware that shortseller Marc Cohodes has launched a website dedicated solely to posting defamatory and false information regarding MiMedx. As part of this launch, Mr. Cohodes has posted a fake email from an anonymous email address identified only as "currentemployee." Mr. Cohodes has timed the posting of this fake email to occur immediately before MiMedx's shareholder call, presumably in an attempt to draw attention away from the very positive results of the last quarter. Please refer to the Company's press release of October 26, 2017.

Mr. Cohodes' website and posting of this fraudulent email is precisely the type of behavior that the Securities and Exchange Commission (SEC) has warned about. The SEC previously issued an alert warning "investors about fraudsters who may attempt to manipulate share prices by using social media to spread false or misleading information about stocks." The alert can be reviewed at the following link, and should be read by all investors:

www.sec.gov/oiea/investor-alerts-bulletins/ia_rumors.html

Additionally, MiMedx has become aware that Mr. Cohodes has been contacting current MiMedx employees, and making false and defamatory statements to them regarding MiMedx, thereby supporting our belief that that he is attempting to manipulate the market to bring down MiMedx's stock price to support his own short position. MiMedx intends to inform the authorities regarding Mr. Cohodes's improper contact with our employees. As the SEC warns in its alert, as a result of Mr. Cohodes' actions, the Company expects the trading today to be chaotic, as the shorts will fraudulently use this posting as catalyst to force the stock price down towards their nefarious ends.

Parker H. "Pete" Petit, Chairman and CEO, commented, "I implore hedge fund managers and other short sellers to distance yourself from this type of misconduct, which we believe is corrupt and illegal stock manipulation. This conduct will be clearly exposed to all regulators, and you should understand the expected results. You know the legal responses that MiMedx will have. MiMedx has the resources, experience and contacts to call this behavior into question in the proper manner."

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I sure wish more companies would defend themselves as vigorously as this...

[dreamboatcruise]

This seems like a rather unusual case where a short is clearly engaging in fraud.

[sunnymay]

I often check information about the company through this datapo.com/en-us/ online service. It simply provides me information even the financial condition of the company. I also always read reviews about the company on the Internet. I understand that there may be dissatisfied customers, but it helps me to evaluate objectively the work of the company and the attitude towards people. If you check the information in different sources, then it will be more accurate.

[dejude42]

Does the recent post from "the street" qualify as destructive short tool?