ArthroCare, a surgical device manufacturer based in Texas, provided more information on its federal investigation at the JP Morgan healthcare conference. According to information shared with attendees at the San Francisco conference, one of the remaining two legacy issues at the company may be resolved in the near future.
Over the past few years, ArthroCare has experienced several significant legal hurdles. An investigation by the Securities Exchange Commission (SEC) was closed in February of 2011, and an issue involving investment derivatives was closed in December of 2011.
The two remaining legacy issues at the company include a United States Justice Department investigation of the company’s sales and marketing practices in relation to its spinal healthcare product division. The company is also under investigation due to alleged violations of the False Claims Act.
David Fitzgerald is the president and CEO of ArthroCare. At the JP Morgan healthcare conference, he said, "The DOJ criminal investigation that began in December of 2008 is ongoing and we continue to actively cooperate with the investigation." He continued, "Although the DOJ has not committed to an end date and may request future tolling agreements, we think it's possible that the DOJ investigation of the company may complete soon."