Ex-ArthroCare CEO, CFO Indicted For $400M Earnings Fraud

Law360, New York (July 17, 2013, 5:40 PM EDT) -- ArthroCare Corp.’s former CEO and chief financial officer have both been indicted over their alleged orchestration of a $400 million scheme to defraud investors by falsely inflating the Texas surgical instrument maker’s earnings, the U.S. Department of Justice announced Wednesday.

According to the 17-count indictment, unsealed Wednesday, former ArthroCare CEO Michael Baker and former CFO Michael Gluk worked with other senior employees of the company to falsely inflate its sales and revenue figures through unnecessary end-of-quarter shipments to distributors, designed to meet analysts’ sales expectations, not...
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