Orthofix Medical, a prominent spine and orthopedics company, witnessed a significant drop in its stock value following the termination of three high-ranking executives by the company’s board. The stock plummeted almost 16% to $15.75 during premarket trading. It is important to note that the stock had already experienced a 9% decrease since the beginning of the year.
The executives who were ousted for cause are Chief Executive Keith Valentine, Chief Financial Officer John Bostjancic, and Chief Legal Officer Patrick Keran. Despite the termination, all three individuals declined to comment at this time.
Furthermore, the board has also urged Valentine to resign from the board altogether.
An extensive investigation conducted by Orthofix revealed that each of the three executives had been involved in repeated instances of inappropriate and offensive behavior. These actions violated several code of conduct regulations and were incongruent with the values and culture of the company.
Consequently, Orthofix made two critical decisions in light of these developments. Firstly, the company decided to pull out of a scheduled Morgan Stanley conference, which was set to take place on Wednesday. Additionally, Orthofix postponed its investor day event, originally planned for September 20.
It is evident that Orthofix Medical is undertaking necessary measures to rectify the situation and uphold its commitment to maintaining a professional work environment and ethical conduct.
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