SEC Dismisses Lawsuit Against MiMedx's CEO

(RTTNews) - MiMedx Group Inc. (MDXG) announced Wednesday that the Board applauds the dismissal of the lawsuit brought by the Securities and Exchange Commission or SEC against the Company's Chairman and CEO, Parker H. "Pete" Petit.

On June 3, 2014, The Securities and Exchange Commission has dismissed its civil lawsuit against Parker H. "Pete" Petit. The dismissal comes five years after the SEC began its investigation and weeks before it was scheduled for trial.

Regarding the SEC, Petit today said, "I very much appreciate the role the SEC plays in policing the markets and protecting the public from unscrupulous practices. I am also pleased the SEC has decided to dismiss the case against me, and I obviously believe the Commission made the right decision. However, I think this action should have occurred much sooner."

The SEC had brought a civil action against Petit alleging that in 2007, when he was Chairman and CEO of Matria Healthcare Inc. (MATR), he provided inside information to a friend who subsequently purchased Matria Healthcare stock. The case did not involve MiMedx or MiMedx stock in any way.

The SEC initially sought substantial penalties and disgorgement from Petit and the purchaser. The SEC also sought to prohibit Petit from serving as an officer and director of a public company. With the lawsuit dismissed, Petit will not pay any money and will not be restricted from serving public companies in any capacity.