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MiMedx: Latest Short Seller Accusation 'Unsubstantiated,' Intended To Manipulate Stock Price

MiMedx: Latest Short Seller Accusation 'Unsubstantiated,' Intended To Manipulate Stock Price
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MiMedx Group Inc (NASDAQ: MDXG) shares closed down 6.6 percent Friday after Aurelius Value revived an old offensive and accused the firm of “serious and pervasive fraud” in an open letter to auditors.

Management responded to claims with counter-allegations of price manipulation.

MiMedx continues to be the target of certain unsubstantiated short seller allegations,” Robert Borchert, vice president of investor relations, said in a statement.

“We take issue when false information is maliciously spread for the purpose of manipulating our company’s stock price. We understand the balance between longs and shorts and the role each plays in our stock market, including legal short selling. However, the actions of a few can cause serious damage in the marketplace when they cross the line.”

The company has long been a short target and fought accusations from the likes of Citron Research’s Andrew Left, Viceroy Research and Marc Cohodes. In fact, over the last five months, it’s published nearly 50 pieces of commentary in response to short-selling activities.

In September, it filed a lawsuit against The Capitol for libel, slander, defamation, false light and interference with business relations.

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