|
Search
Search through the thousands of lawsuits, complaints and recalls on our site.
 |
Case ID: 5082 | Stocks | 07/18/2008
A Motion to Dismiss the initial complaint was filed on April 7, 2008, by Arthrocare Corporation. In response, the Plaintiff's Motion to Stay the Motion to Dismiss was filed on April 11, 2008. In addition, certain individual defendants have filed a Motion to Dismiss on May 2, 2008. The motions are currently pending before the court.
According to a press release dated April 4, 2008, the complaint charges ArthroCare and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ArthroCare designs, develops, manufactures, and markets medical devices for use in soft-tissue surgery. Its products are based on the patented soft-tissue surgical controlled ablation technology called Coblation technology. Specifically, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements and failed to disclose the following adverse facts which were known to defendants or recklessly disregarded by them: that the Company’s reported financial results were materially overstated due to the improper inclusion and recognition of revenue attributable to purported “purchases” of medical devices by DiscoCare, Inc. (“DiscoCare”), an ArthroCare “sales agent” for the sale of ArthroCare medical devices. More specifically, defendants violated Generally Accepted Accounting Practices ("GAAP") in numerous material respects by, inter alia,: (i) recognizing revenue where payment for the shipment of ArthroCare’s products was not unconditional, but was entirely contingent upon the decision of third-party payers to pay for the ArthroCare device or the successful resolution of personal injury lawsuits; (ii) recognizing revenue from transactions with DiscoCare where DiscoCare did not have an unconditional obligation to pay ArthroCare for certain products; (iii) recognizing revenue from bill and hold transactions between the Company and DiscoCare involving certain products which were to be paid for pursuant to the contingent payment arrangement; and (iv) materially overstating financial results due to the improper inclusion and recognition of revenue attributable to purported “purchases” of medical devices by a related party, Device Reimbursement Services (“DRS”). According to the complaint, during the Class Period, the Company’s stock price rose, reaching a high of $64.84 on October 31, 2007. As a result of a series of adverse news stories and partial disclosures concerning the propriety of the Company’s business relationship with DiscoCare and DRS, as well as the accuracy of the Company’s reported financial results, culminating with an article dated January 23, 2008, the price of the Company’s stock decreased to approximately $38.11 by January 25, 2008.
At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest According to a October 30, 2008, press release, the Complaint charges that the defendant and certain of its officers and directors violated federal securities laws by misrepresenting the Company's financial condition. The court has dismissed the class-action lawsuit filed against transportation company Interpool, Inc. (Pink:IPLI)) and certain of its officers and directors by stockholders who purchased the company's common stock between March 27, 2001, and December 29, 2003. The actions claimed that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against biopharmaceutical company CV Therapeutics, Inc. (Nasdaq: CVTX) and certain of its officers and directors by stockholders who purchased the company's common stock between May 14 and August 1, 2003.
Several class actions have been filed against drug company aaiPharma, Inc. (Nasdaq: AAII) and certain of its officers and directors by stockholders who purchased the company's common stock between July 23, 2003, through Feb. 4, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A class action has been filed against SINA Corporation (NasdaqNM:SINA), and certain of its officers and directors by stockholders who purchased the company's common stock between October 26, 2004 and February 07, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. According to a press release dated October 09, 2008, the Complaint charges AuthenTec and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's business, operations and prospects, caused AuthenTec's stock price to become artificially inflated, inflicting damages on investors. AuthenTec is a mixed-signal semiconductor company that provides fingerprint authentication sensors and solutions to the high-volume personal computer, wireless device, and access control markets. The Company's sensors enable users to access and control multiple functions on an electronic device by touching or sliding a finger across the sensor.
|
|
© 2000 - 2008 Copyright. All rights reserved nola3, llc.
