MiMedx (NSDQ:MDXG) said today it agreed to a confidential lawsuit settlement with former employee William Mills, who the company previously alleged broke contract by selling another company’s medical products while employed at MiMedx.
The Marietta, Ga.-based company said that Mills voluntarily resigned from his position in January this year, and that the lawsuit was a “dispute solely over Mr. Mills’ MiMedx employment agreemnt, and no other allegations have been made by either party,” according to a press release.
The settlement included an undisclosed monetary award and an agreement in which Mills said he would not sell any products of his current employer to any MiMedx customers for nine months.
“I have no knowledge of the agreements or payment terms between MiMedx and its customers. I also do not know or have any way of knowing of how sales of products were accounted for by the company in its financial statements. To my knowledge, the vast majority of the MiMedx products which were sold into my accounts were used and were not returned. MiMedx makes an excellent product. I look forward to continuing my employment with my current employer,” Mills said in a prepared statement.
“We are pleased to have settled this lawsuit with Mr. Mills. The prosecution of our other lawsuits is critical to ensuring the appropriate legal remedies and to rectify the misconduct committed by those individuals. Mr. Mills did not bring any claims alleging channel stuffing, as other employees have, and he does not have enough knowledge of accounting matters to make such an allegation. We are glad we were able to resolve this matter amicably with Mr. Mills. We look forward to achieving appropriate outcomes from our legal actions against those other individuals,” CEO Parker Petit said in a press release.
In October, MiMedx saw shares lift after announcing 3rd quarter revenue that beat consensus on The Street alongside FDA approval to proceed with the Investigational New Drug phase 2B study of its AmnioFix injectable product.