Court Orders DOJ to Disclose Email of Person Who Offered Info on Cohodes for Bitcoin
On Thursday, May 23, 2024, the United States District Court for the Northern District of California ordered the United States Department of Justice to disclose redacted information from several documents related to an investigation.
The case involved plaintiff Marc Cohodes, a short-seller who had been publicly critical of medical device company MiMedx Group and its executives. Cohodes claimed MiMedx executives had engaged in improper business practices. In 2017, MiMedx and its CEO Parker Petit responded by accusing Cohodes of spreading misinformation as part of a scheme to manipulate the stock price.
Soon after, the Department of Justice launched an investigation into Cohodes for alleged insider trading. As part of this, FBI agents visited Cohodes’ home in December 2017. Cohodes maintained he had done nothing wrong and the investigation was an attempt to silence his criticism of MiMedx.
In 2020, MiMedx executives Petit and William Taylor were convicted of securities fraud for engaging in schemes to disguise company expenses. That same year, MiMedx paid $6.5 million to settle claims it had submitted false pricing information to federal healthcare programs.
As part of his lawsuit, Cohodes requested disclosure of redacted information from DOJ documents related to the investigation against him. This included names, email addresses, and other details in FBI records and memos from interviews the DOJ conducted with witnesses in January and February 2018.
However, the DOJ refused, citing exemptions intended to protect personal privacy. In its ruling, the court found these exemptions did not apply. It noted MiMedx executives had publicly discussed the investigation and the witnesses. The court also pointed out one witness had apparently offered information about Cohodes to the DOJ in exchange for Bitcoin.
Given the questionable circumstances surrounding the probe and its outcome, the judge determined the public interest in disclosure outweighed any privacy concerns. The ruling means the DOJ must now disclose the previously redacted identifying information, including the names of the two witnesses interviewed by the government in February 2018 and the email address of the person who offered information about Mr. Cohodes in exchange for Bitcoin.
Please contact BlockTribune for access to a copy of this filing.
