Let’s face the facts here, the C-Suite was aggressive on multiple fronts.
Does that mean they are a complete and outright fraud or a zero? My analysis points to an emphatic NO.
I will admit, management was aggressive and more than likely inappropriate dealing with Whistleblowers most directly tied to the unfavorable Veterans Administration news (approximately 10% of overall sales) in both South Carolina and Minnesota. That said, the sole publicly announced outcome is a settlement with a former employee in which said employee admitted he lied in his deposition and paid the company a multi six figure settlement.
In terms of the unfavorable VA articles as of late, on October 2nd relating to the SC case...the doctors charged have been granted a continuance by agreeing to a pretrial diversion program. Essentially the Government has weighed the costs and balanced the public’s interest in pursuing such a case, likely resulting in charges being dropped.
More to come, if article is approved...
Disclosure: I am/we are long MDXG.
Additional disclosure: Full disclosure...I've known this pure biologics company for over 10 years, did not buy until March of 2018, added in June 2018, not in the July swoon due to an already overweight position and current cost basis is flat. I own both the underlying equity and some long dated call contracts.