Tissue maker CryoLife says it faces SEC investigation
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Posted 5:17PM on Monday, August 19, 2002
ATLANTA - A Georgia tissue bank whose products have been linked to a death and numerous serious infections is being investigated by the Securities and Exchange Commission. <br>
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CryoLife Incorporated said Monday the SEC probe was related to a recent order from the Food and Drug Administration to recall tissue because of suspected contamination. <br>
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Officials from CryoLife, the nation's largest supplier of living human tissue for implantation, did not immediately return calls to The Associated Press. <br>
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Shares of CryoLife plunged last week after the human tissue bank delayed a quarterly securities filing. The sharp sell-off occurred after federal regulators ordered the company to stop distributing human cadaver tissue August 14. <br>
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FDA officials say the company, which is based in Kennesaw, Georgia, has failed to adopt and follow safety procedures to keep fungus and bacteria from contaminating soft tissue. <br>
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The FDA ordered CryoLife to recall all soft tissue processed since October 3. That's a month before a Minnesota man died from tainted tissue he received in a knee operation.