Shares of Orthofix Medical Inc. OFIX plunged 17.1% toward a 10-month low in premarket trading Tuesday, after the spine and orthopedics company said it terminated Chief Executive Keith Valentine, Chief Financial Officer John Bostjancic and Chief Legal Officer Patrick Keran “for cause,” effective immediately. The terminations follow a investigation conducted by independent counsel. “As a result of the investigation, the Board determined that each of these executives engaged in repeated inappropriate and offensive conduct that violated multiple code of conduct requirements and was inconsistent with the company’s values and culture,” the company said in a statement. “These matters are unrelated to and do not impact the company’s strategy, results of operations or previously filed financial statements.” Orthofix named Chairperson Catherine Burzik as interim CEO, Corporate Controller Geoffrey Gillespie as interim CFO and Chief Ethics and Compliance Officer Puja Leekha as interim CLO, while the company searches for permanent successors. The stock has lost 9.3% year to date through Monday, while the S&P 500 SPX has gained 16.9%.
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