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Showing posts from September, 2013

Was Medifast transparent with investors about an S.E.C. investigation?

About two weeks ago, Medifast (NYSE: MED) disclosed that it consented to an entry of a Cease-and Desist Order and agreed to pay a $200,000 civil money penalty in connection with an "investigation" by the Securities and Exchange Commission into its financial reporting from 2006 to 2009. However, Medifast's press release and 8-K report made no mention that Brendan N. Connors, its former CFO and Marc G. Nochimson, the engagement partner who had supervised Medifast's audits, consented to the entry of separate Cease-and-Desist Orders which alleged improper conduct. Furthermore, I did not find any specific disclosure of the above referenced investigation in any of Medifast's previous filings with the S.E.C. I asked the company for an explanation via email, but it did not respond my request.

Medifast pays a $200,000 civil penalty

Both Medifast's press release and identical 8-K report did not mention that its former CFO and the engagement partner who supervised its a…