Misonix (NSDQ:MSON) said last week that the U.S. Department of Justice has dropped its inquiry into the company following a probe of self-reported possible Foreign Corrupt Practices Act violations in China.
The Justice Department action, detailed in an August 13, 2019, letter to the company, follows the Securities & Exchange Commission’s June 18, 2019, letter clearing Misonix of any alleged wrongdoing.
The case dates back to the fall of 2016, when then-chairman & CEO Michael McManus Jr. stepped down just before Misonix delayed its annual report due to “deficiencies” in its internal controls. The Farmingdale, N.Y.-based ultrasound device maker then voluntarily informed the SEC and the Justice Department of possible FCPA violations concerning a distributor in China.
In May, Misonix agreed to enact a six-year plan to reform its corporate governance and cover $500,000 worth of legal fees to settle a shareholders’ derivative complaint brought over the alleged violations.