MiMedx (NASDAQ:MDXG) had a mixed day on Friday that ultimately resulted in a surge as the company is seeking to ameliorate some of its past transgressions.
The biomedical company said on Thursday that its board is carrying out action to recover compensation that was shelled out to founded and former CEO Parker H. “Pete” Petit and three other senior executives. The move comes following an investigation regarding its practices earlier this summer.
The stock had suffered from the internal probe, which looked into MiMedx’s sales and distribution practices, leading to the indictment of three people who were employed by the Department of Veteran Affairs. These workers faced charges after reportedly paying thousands of dollars by the company to use its products on VA patients.
The company said that it will revise the way it treats how its executives left from resignations to “terminations for cause.” In addition to Petit, MiMedx also saw the departure of William C. Taylor, former president, chief operating officer and former member of the board; Michael J. Senken, former chief financial officer and principal accounting officer; and John E. Cranston, former vice president, corporate controller and treasurer.
Petit and Taylor stepped down on June 30 as officers, while Senken and Cranston left their posts on June 6.
MDXG stock was gaining about 3.5% on Friday after declining earlier in the day.