MiMedx Investor Sold Stock Too Early to Sue For Securities Fraud

A pension fund’s MiMedx Group investment losses can’t be tied to disclosures about alleged rampant fraud at the biotherapeutics company and must be dismissed, the Eleventh Circuit ruled Monday.

News of the alleged physician-inducement schemes, improper accounting, and other misdeeds emerged after the Carpenters Pension Fund of Illinois sold its stock in the company, the appeals court said. And the three sets of statements before Carpenters’ stock sale that the fund points to, including the announcement of internal and external investigations, weren’t true corrective disclosures, it said.

Statements by MiMedx that revealed some truthful information nevertheless “provided misleading statements to ...