SOURCE: Izard Nobel LLP

December 19, 2008 15:39 ET

Izard Nobel LLP Announces Investigation of ArthroCare Corp.

HARTFORD, CT--(Marketwire - December 19, 2008) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that it is investigating possible securities law violations by ArthroCare Corp. ("ArthroCare" or the "Company") (NASDAQ: ARTC) on behalf of persons who purchased ArthroCare stock on or after December 18, 2003.

Izard Nobel LLP is the law firm that first initiated the investigation of ArthroCare and filed the first securities fraud class action complaint against the Company in early 2008, in the United States District Court for the Southern District of Florida, alleging that ArthroCare had materially overstated its financial results through the improper recognition of revenue.

In a press release today, the Company announced an expansion of the periods covered by the restatement it had previously announced on July 21, 2008. According to the Company's Audit Committee, the Company's financial statements for the fiscal years ended December 31, 2000 through December 31, 2005, for each of the quarters of the fiscal years ended December 31, 2000 through December 31, 2005, and for the two quarters ended June 30, 2006 can no longer be relied upon. The Company also announced the resignation of three of its officers, including its CFO, as well as the receipt of two subpoenas from the U.S. Attorney for the Southern District of Florida for the production of documents relating to DiscoCare, Inc.

As a result of ArthroCare's disclosures today concerning the restatement of the Company's reported financial results, the price of the Company's stock has fallen from $16.23 to as low as $4.73. During the period under investigation, ArthroCare's stock traded as high as $64.84 on October 3, 2007.

If you purchased the common stock of ArthroCare since December 18, 2003, or if you have additional information about ArthroCare, or if you would like more information about this investigation, class action cases in general, and your rights, please visit:, or contact Izard Nobel LLP toll-free at (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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