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Qui Tam Complaint Against MiMedx Is Fully Dismissed

MARIETTA, Ga., Oct.12, 2015 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and the Dental sectors of healthcare, announced today the qui tam complaint which had been filed against the Company has been dismissed by the court.

Toward the end of 2014, MiMedx received a civil subpoena issued by the Office of Inspector General of the Department of Health and Human Services ("OIG"). The subpoena was prompted by an underlying qui tam complaint. Parker H. Petit, Chairman and CEO, stated, "As we suspected, this case was brought by an individual who is an executive at one of our major competitors, Organogenesis, acting as the relator or plaintiff. In all my years in healthcare, I have never seen business tactics more egregious than what has been perpetrated by this competitor in approaching numerous government agencies to take action against MiMedx. Even though their CEO departed this company last December, it appears their interactions with the VA, CMS, FDA and DOJ began as early as 2012. Unfortunately, while it has been costly, we have resolved this last matter."

In March 2015, the Department of Justice ("DOJ") indicated it was declining to intervene in the case, as announced by the Company in its press release of March 23, 2015. The relator in the underlying qui tam complaint still had the option of pursuing the claims without the government, but ultimately decided not to continue with the case. Thus, on October 6, 2015, the court dismissed the qui tam action in full.

Petit said, "We believe the underlying claims of the relator in this case were without merit and full of ridiculous innuendo. In my judgement, they were predominately outright lies. It is quite...