ArthroCare To Pay $30M To End $400M Securities Fraud Probe

Law360, Los Angeles (January 7, 2014, 8:12 PM EST) -- Texas-based surgical instrument maker ArthroCare Corp. agreed Tuesday to pay $30 million and enter into a deferred prosecution agreement, ending a U.S. Department of Justice probe over senior executives' scheme to defraud the company’s investors of $400 million.

The DOJ filed a criminal information in Texas federal court on Tuesday as part of the agreement, charging the medical device firm with one count of conspiracy to commit securities fraud and wire fraud. ArthroCare also agreed to an “enhanced” compliance program and to report on it annually...
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