ARTHROCARE GETS RELIEF FROM DISCOCARE NIGHTMARE (Orthopedics This Week)
ArthroCare Corporation’s long DiscoCare nightmare under a previous management team appears to be coming to an end.
On January 7, 2014, the company announced a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (DOJ). The DPA will resolve the ongoing investigation by the DOJ regarding allegations of securities and related fraud over false sales reported to DiscoCare and other distributors.
Per the January 7, 2014 press release:
In conjunction with the DPA, the DOJ concurrently filed a criminal information concerning a single-count of conspiracy to commit wire and securities fraud. The DPA is for a 24 month period and, subject to its successful completion, the DOJ agrees that the DPA will expire and that the DOJ will seek dismissal of the criminal information. Pursuant to the DPA, ArthroCare has agreed to pay a $30 million fine to the DOJ and to maintain a compliance program meeting certain criteria specified in the DPA. ArthroCare also must report annually on the status of the Compliance Program to the DOJ. There is no independent monitor requirement pursuant to the DPA.
DiscoCare Saga
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