MiMedx Group Inc. settled a lawsuit regarding an employment contract dispute with a former employee.
In the lawsuit, MiMedx alleged that William Mills breached his restrictive covenants and his duty of loyalty to MiMedx by selling another company's medical products while employed by MiMedx. The company also claimed that the breach continued after Mills voluntarily resigned from MiMedx in January.
The parties reached an undisclosed monetary settlement. Mills agreed not to sell any of his current employer's products to MiMedx customers serviced by Mills for nine months.
Mills also acknowledged and confirmed that he made no allegations of deceptive business practices like "channel stuffing" against MiMedx.
A separate lawsuit, filed in December 2016, alleged that MiMedx inflated quarterly revenue figures over several years, using channel stuffing to book sales of products that customers never ordered. The company said those allegations are "not factual and fallacious."
The company in September settled a lawsuit with a former employee who initially claimed that it was channel stuffing. The employee agreed to pay a confidential settlement amount to the company and also added that he later discovered he was incorrect about the allegation of deceptive business practices.
