$8M Settlement Reached In ArthroCare Shareholder Suit

Law360, New York (September 6, 2011, 10:15 PM EDT) -- ArthroCare Corp. reached an $8 million settlement Tuesday in Texas federal court with a class of shareholders who accused the surgical instrument company of inflating share value by selling a spinal surgery device to doctors through an illicit scheme involving patient referrals by personal injury lawyers.

The company, which in 2009 restated its earnings for the previous four years and admitted to the sales scheme, agreed to pay the plaintiffs' counsel $2.25 million and said it will receive $8 million in cash from its liability insurers....
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