Investor Hits BioMimetic With Fraud Action

Law360, New York (July 7, 2011, 6:49 PM EDT) -- A BioMimetic Therapeutics Inc. investor filed a securities class action Wednesday in Tennessee accusing the medical device maker of lying about the progress of approval for a new bone injury treatment, causing its stock price to plummet when a safety panel questioned the product's potential to cause cancer.

Investor Paula Kuyat brought the suit on behalf of those who purchased BioMimetic stock between Oct. 14, 2009, and May 11, during which time the company assured investors that its new product, Augment Bone Graft, was doing well...
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