NEW YORK, July 22, 2008 (LAWFUEL) — The Rosen Law Firm today
announced that it has commenced an investigation into allegations that
ArthroCare Corp. (“ArthroCare” or the “Company”) (Nasdaq:ARTC) violated
the federal securities laws by improperly recognizing revenue from
certain sales in violation of Generally Accepted Accounting Principles
(“GAAP”).
On July 21, 2008, the Company announced it will restate its financial
statements for the fiscal years 2006 and 2007 and first quarter of 2008
because it had recorded revenue from sales to certain entities in
violation of GAAP. The Company estimates that the restatement will
require a non-cash reduction of revenue of $4.0 million to $7.0 million
in 2006, $20 million to $25 million in 2007 and $2.0 million to $5.0
million in Q1 2008. News of the restatement resulting from the improper
revenue recognition practices caused ArthroCare’s stock price to
plunge, inflicting substantial losses on investors.
As a result of these allegations, the Rosen Law Firm is preparing a
class action lawsuit on behalf of investors who purchased ArthroCare
stock during the period from May 3, 2006 through and including July 21,
2008.
You may access the website at http://www.rosenlegal.com to participate
in the proposed class action.
If you purchased ArthroCare securities and would like further
information concerning your legal rights, please contact Laurence
Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email
lrosen@rosenlegal.com or pkim@rosenlegal.com or visit the website at
www.rosenlegal.com
