AUSTIN, Texas--(BUSINESS WIRE)--Nov. 28, 2011--
ArthroCare Corp. (NASDAQ: ARTC), a leader in developing
state-of-the-art, minimally invasive surgical products, announced that
it has reached an agreement in principle to settle the private
securities class action suits pending against the Company and two of its
former officers. These suits were previously consolidated into the
action titled In Re ArthroCare Corporation Securities Litigation,
Case No. 1:08-cv-00574-SS (consolidated) in the U.S. District Court,
Western District of Texas.
The settlement, subject to final documentation and court approval, would
settle all claims arising from the purchase or sale of ArthroCare
securities of a class of all purchasers of ArthroCare common stock [and
call options, and sellers of put options on ArthroCare common stock]
between December 11, 2007 and February 18, 2009, inclusive (the Class),
except those members of the Class who opt out, for a payment of
$74 million to a settlement fund to be created for the settlement. If
the settlement is approved, counsel for the plaintiff will apply for an
award of attorneys’ fees and reimbursement of expenses from the
settlement fund.
ABOUT ARTHROCARE
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(R) 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(R) 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 gynecology.
FORWARD-LOOKING STATEMENTS
The information provided herein includes forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended. Statements that are not historical facts are
forward-looking statements. Forward-looking statements are based on
beliefs and assumptions by management and on information currently
available to management. Forward-looking statements speak only as of the
date they are made, and the Company undertakes no obligation to update
any of them publicly in light of new information or future events.
Additional factors that could cause actual results to differ materially
from those contained in any forward-looking statement include, without
limitation: the ability to reach a final, definitive settlement
agreement with the plaintiff and the class in the consolidated
securities litigation, the ability to secure approval of the settlement
by the court; the ability to overcome any objections or appeals
regarding the settlement; the extent to which members of the class opt
out of the settlement and pursue individual claims; the ability of the
Company to absorb the payment of the settlement; the resolution of
litigation pending against the Company; the Company's ability to design
or improve internal controls to address issues detected in its reviews
of internal controls and insurance reimbursement practices or by
management in its reassessment of the Company's internal controls; the
impact upon the Company's operations of legal compliance matters or
internal controls review, improvement and remediation; the ability of
the Company to control expenses relating to legal compliance matters or
internal controls review, improvement and remediation; the Company's
ability to remain current in its periodic reporting requirements under
the Exchange Act and to file required reports with the Securities and
Exchange Commission on a timely basis; the results of the investigation
being conducted by the United States Department of Justice; the impact
on the Company of additional civil and criminal investigations by state
and federal agencies and civil suits by private third parties involving
the Company's financial reporting and its previously announced
restatement and its insurance billing and healthcare fraud-and-abuse
compliance practices; the ability of the Company to attract and retain
qualified senior management and to prepare and implement appropriate
succession planning for its Chief Executive Officer; general business,
economic and political conditions; competitive developments in the
medical devices market; changes in applicable legislative or regulatory
requirements; the Company's ability to effectively and successfully
implement its financial and strategic alternatives, as well as business
strategies, and manage the risks in its business; and the reactions of
the marketplace to the foregoing.
Source: ArthroCare Corp.
ArthroCare Corp.
Corinne Ervin, 512-391-3907
Investor Information
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