HARTFORD, Conn., April 4, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that it has filed a lawsuit seeking class action status on behalf of all persons who purchased the common stock of ArthroCare Corporation ("ArthroCare" or the "Company") (Nasdaq:ARTC) between August 4, 2006 and January 23, 2008, inclusive (the "Class Period"). The action is pending in the United States District Court for the Southern District of Florida at docket number 9;08-cv-80343.
The Complaint alleges, inter alia, that ArthroCare and certain of its officers violated the federal securities laws by issuing materially false and misleading statements concerning the Company's business and financial results during the Class Period. Specifically, the Complaint alleges that ArthroCare's reported financial results were materially false, misleading and overstated as a result of (i) ArthroCare's improper recognition of revenue from transactions with DiscoCare, Inc. ("DiscoCare"), which were contingent in nature; and (ii) ArthroCare's improper recognition of revenue from transactions with Device Reimbursement Services ("DRS"), an undisclosed, related party. The Complaint further alleges that these material misrepresentations artificially inflated the price of ArthroCare stock, causing the price of ArthroCare to trade as high as $64.84 per share during the Class Period. As a result of adverse news stories and partial disclosures concerning the accuracy of the Company's reported financial results and its business dealings with DiscoCare and DRS, the price of the Company's stock fell to approximately $38.11 by January 25, 2008. The Complaint alleges that Defendants' conduct constitutes violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
If you purchased ArthroCare common stock during the Class Period, you may, no later than June 3, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
For more information about the case, its claims, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com. To view a copy of the complaint filed by Schatz Nobel Izard P.C. or for more information about class action cases and Schatz Nobel Izard, please visit our website: www.snilaw.com.