|[January 07, 2014]
ArthroCare Announces Entry into a Deferred Prosecution Agreement
AUSTIN, Texas --(Business Wire)--
ArthroCare Corp. (NASDAQ: ARTC), a leader in developing
state-of-the-art, minimally invasive surgical products, and the U.S.
Department of Justice ("DOJ") entered into a Deferred Prosecution
Agreement ("DPA") filed today with the United States District Court in
the Western District of Texas (the Court). The DPA will resolve the
ongoing investigation by the DOJ regarding allegations of securities and
related fraud committed under a previous management team. The
investigation was first announced in December 2008. The facts underlying
this agreement relate specifically to matters self-disclosed by
ArthroCare to the U.S. Securities and Exchange Commission ("SEC (News - Alert)") and
the DOJ, as previously described by ArthroCare in its public press
releases and SEC filings.
In conjunction with the DPA, the DOJ concurrently filed a criminal
information concerning a single-count of conspiracy to commit wire and
securities fraud. The DPA is for a 24 month period nd, subject to its
successful completion, the DOJ agrees that the DPA will expire and that
the DOJ will seek dismissal of the criminal information. Pursuant to the
DPA, ArthroCare has agreed to pay a $30 million fine to the DOJ and to
maintain a compliance program meeting certain criteria specified in the
DPA. ArthroCare also must report annually on the status of the
Compliance Program to the DOJ. There is no independent monitor
requirement pursuant to the DPA.
The foregoing is only a summary of the material terms of the DPA and
does not purport to be a complete description of the rights and
obligations of the parties thereunder and is qualified in its entirety
by reference to the full text of the DPA, which will be filed as an
exhibit on a Form 8-K filed concurrently with this press release.
ArthroCare develops and manufactures surgical devices, instruments, and
implants that strive to enhance surgical techniques as well as improve
patient outcomes. Its devices improve many existing surgical procedures
and enable new minimally invasive procedures. Many of ArthroCare's
devices use its internationally patented Coblation® technology.
This technology precisely dissolves target tissue and limits damage to
surrounding healthy tissue. ArthroCare also develops surgical devices
utilizing other patented technology including its OPUS® line
of fixation products as well as re-usable surgical instruments.
ArthroCare is leveraging these technologies in order to offer a
comprehensive line of surgical devices to capitalize on a multi-billion
dollar market opportunity across several surgical specialties, including
its two core product areas consisting of Sports Medicine and Ear, Nose,
and Throat as well as other areas such as spine, wound care, urology and
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