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ArthoCare Inks Deal With Justice, Cooperates Against Former Execs

The company will pay $30 million, establish a compliance program and cooperate on prosecutions of former executives as part of its resolution of fraud allegations with the Department of Justice. Penalties for ArthroCare were reduced for “extraordinary” cooperation with the feds.

ArthroCare will pay $30 million and cooperate in federal prosecutions of its former executives under a deferred prosecution agreement inked with the Department of Justice Jan. 7.

The firm also must establish a compliance program to detect and prevent fraudulent activity, including the improper accounting and billing practices that led to the DOJ investigation and separate ongoing...

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