ArthroCare To Settle Class Action Suits For $74 Mln, Stock Up (Nasdaq)
(RTTNews) - ArthroCare Corp. (ARTC) Monday said it reached an agreement in principle to settle the private securities class action suits pending against the company and two of its former officers for $74 million. In early morning trade, shares of ArthroCare gapped open sharply higher and currently trading up over 10 percent on more than average volume.
The settlement would finalize all claims arising from the purchase or sale of ArthroCare securities between December 11, 2007 and February 18, 2009, inclusive. The settlement excludes those members of the Class who opt out. The payment of $74 million would be made in to a settlement fund and the settlement is subject to final documentation and court approval.
The suits were previously consolidated into the action titled In Re ArthroCare Corporation Securities Litigation in the U.S. District Court, Western District of Texas. If the settlement is approved, counsel for the plaintiff would apply for an award of attorneys' fees and reimbursement of expenses from the settlement fund.
The first evidence of trouble emerged in July 2008 when the company announced...
