Maligned ex-MiMedx chief Petit wants back on the board — wound care company tells shareholders to say no way
Weeks ago, a 15-month long sweeping internal investigation encompassing more than a million documents, thousands of hours of secret video surveillance — installed under the auspices of former CEO Parker “Pete” Petit — and over 80 witnesses, painted a sordid picture of the scandalous past of wound care company MiMedx. On Monday, MiMedx disclosed that Petit is looking to return to the company’s board, along with two of his business associates, at an annual meeting of shareholders planned for mid-June.
The company, which has long been criticized for its business practices, sells injectable treatments — derived from the amniotic tissue — to treat burns and soft tissue wounds, and counts veterans and military hospitals as its customers. MiMedx has also faced the ire of FDA, which has previously accused it of flagrant manufacturing violations and indicated MiMedx’s suite of products does not meet its regulatory standards. An internal review, which commenced February 2018, prompted the ouster of a number of executive departures, including Petit and COO William “Bill” Taylor.
They found that MiMedx’s former senior management team made material misstatements and omissions about its dealings with its largest distributor — and that Petit falsely testified under oath during a deposition when discussing the distributor. Investigators also uncovered other conduct that appeared to have been “designed to manipulate the timing and recognition of revenue.” In addition, the investigation revealed a systematic pattern of stifling concern raised by MiMedx’s own employees, under the direction of Petit and Taylor. The two executives focused on disputing allegations and discrediting employees, eventually reassigning, disciplining or terminating them.
MiMedx on Monday issued a press release urging its shareholders to vote for its nominees — including the company’s new CEO Timothy Wright — and two others Kathleen Behrens Wilsey and Todd Newton — put forward last week by its biggest shareholder Prescience Point Capital Management.
The reinstatement of Petit on the board will culminate in “dire consequences,” MiMedx said in a statement.
“(P)etit’s campaign for election to the Board is motivated by his desire to achieve personal and professional redemption, rather than a desire to serve shareholders, and MiMedx struggles to understand what either of Mr. Petit’s nominees could possibly bring to the Board.”
Image: Kristoffer Tripplaar for SIPA AP