Defendant Name:
ArthroCare Corporation
Defendant Type:
Public Company
SIC Code:
3845
CUSIP:
04313610
Document Reference:
34-63883
Document Details
Legal Case Name
In the Matter of ArthroCare Corporation
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
09-Feb-2011
Document Format
Administrative Proceeding
AAER
3242
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On February 9, 2011, the SEC filed settled administrative proceeding against ArthroCare Corporation. According to the SEC: "Between the fourth quarter of 2005 and the first quarter of 2008 (the 'restatement period'), ArthroCare materially overstated and prematurely recognized revenue, primarily on sales of SpineWands to certain of ArthroCare's agents and distributors, including DiscoCare. Most of these transactions occurred at or near quarter-end and were intended to help the company reach aggressive internal revenue targets and satisfy analysts' revenue expectations. ArthroCare lacked an effective system of internal controls over sales, particularly with respect to its Spine Business Unit, where most of the improprieties occurred. This allowed ArthroCare sales personnel to withhold critical information on revenue recognition from the company's accounting staff."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
