SEC Unsheathes SOX Provision Against Ex-ArthroCare Execs

Law360, New York (April 3, 2012, 6:32 PM EDT) -- Relying on a little-used provision of the Sarbanes-Oxley Act, the U.S. Securities and Exchange Commission sued two former ArthroCare Corp. executives in Texas on Monday in an attempt to recover bonuses and stock profits accrued during a period of accounting fraud at the medical device maker.

The SEC claims that Michael Baker and Michael Gluk, CEO and chief financial officer, respectively, of the Austin, Texas-based company failed to reimburse ArthroCare for bonuses, incentive pay and profits from stock sales, as required by Section 304 of the...
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