SOURCE: Kahn Gauthier Swick, LLC

December 22, 2008 20:28 ET

Investor Notice: KGS Announces Investigation Into ArthroCare Corp. -- ARTC

NEW ORLEANS, LA--(Marketwire - December 22, 2008) - Kahn Gauthier Swick, LLC announces that it has commenced an investigation into ArthroCare Corp. ("ArthroCare" or the "Company") (NASDAQ: ARTC) to determine whether it has violated federal securities laws by issuing false and misleading statements to its shareholders. Currently, lawsuits are pending in the United States District Court for the Southern District of Florida.

On Friday, ArthroCare announced that it would restate its results dating back to 2000 because certain executives may have artificially pumped up the Company's revenue to help it meet its forecasts. The Company disclosed that it was served subpoenas by the U.S. Attorney in south Florida, along with the fact that its CFO and two other executives left the Company.

On the heels of losing more than half their value since early July after the Company announced a restatement for the past two-and-a-half years, shares plunged more than 60 percent Friday, falling to the lowest price in 11 years. In trading on Monday, shares lost $1.11, and fell to $4.81, slightly higher than Friday's low of $4.73.

If you have information that might assist KGS in its investigation or would like to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Managing Partner Lewis Kahn of KGS direct, toll free 1-866-467-1400, ext. 100, or by email at lewis.kahn@kgscounsel.com. KGS focuses its practice on securities fraud litigation, and the firm's lawyers have significant experience working on securities fraud cases that have resulted in significant recoveries for shareholders. For more information on KGS, please visit www.kgscounsel.com.

Contact Information

  • CONTACT:
    Kahn Gauthier Swick, LLC
    Lewis Kahn
    650 Poydras St., Suite 2150
    New Orleans, LA 70130

    Toll free 1-866-467-1400, Ext. 100
    lewis.kahn@kgscounsel.com