June 17, 2015
ArthroCare Corporation, a company selling arthroscopic surgery and sports medicine devices, was ordered to pay a $30 million fine in January 2014, according to the Department of Justice (DOJ). In a case that was examined by FBI and SEC, the penalty was exacted to settle charges that top executives at ArthroCare allegedly defrauded shareholders of more than $400 million.
According to the DOJ, ArthroCare conceded that executives lied about the company's revenue and importance of its distributor relationships. The company also admitted that the executives had company products shipped to distributors in order to report higher sales. In July 2008, ArthroCare's stock price fell dramatically after the company said it would restate its quarterly results, resulting in a more than $400 million loss to investors.
ArthroCare has since been acquired by Smith & Nephew.
ArthroCare fine: $30 million
[image courtesy of ANANKKML/FREEDIGITALPHOTOS.NET]
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