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SEC: No enforcement action to be taken against Farmingdale manufacturer

Misonix headquarters in Farmingdale, seen on Dec. 19,

Misonix headquarters in Farmingdale, seen on Dec. 19, 2016.  Photo Credit: Steve Pfost

The Securities and Exchange Commission said it will not pursue enforcement actions against medical device maker Misonix Inc. related to actions by a former distributor in China, the company said.

The Farmingdale company made the announcement last week after receiving a letter from the SEC.

In May, the maker of ultrasonic devices agreed to reform its internal controls and pay $500,000 in attorney's fees as part of a preliminary settlement of a shareholder lawsuit related to the same possible violations of the Foreign Corrupt Practices Act.

That settlement is scheduled for final review by the U.S. District Court in Central Islip in July.

In the June 18 letter, the SEC said it had concluded its investigation of Misonix and, based on its most current information, does not intend to recommend enforcement action.

In September 2016, Misonix voluntarily contacted the SEC and Department of Justice about questionable practices by its independent distributor in China. In 2017 Misonix said that some company officials had been involved in possible violations.

The Foreign Corrupt Practices Act bars Americans from bribing foreign government officials directly or indirectly to further their business.

In a statement, Stavros Vizirgianakis, president and chief executive of Misonix, said the company is "pleased" about the conclusion of the SEC's investigation.

“Looking ahead, we remain focused on executing on our long-range strategic growth plan ... and will continue to seek to operate at the highest levels of ethics, transparency and compliance," he said.

Misonix is Long Island's 38th largest public company based on 2018 revenue of $37.2 million.

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