Austin, TX ArthroCare Corp, (NASDAQ: ARTC), a developer of minimally invasive surgical products, announced that it has reached an agreement in principle to settle the private securities class action suits pending against the Company and two of its former officers. These suits were previously consolidated into the action titled In Re ArthroCare Corporation Securities Litigation, Case No. 1:08-cv-00574-SS (consolidated) in the U.S. District Court, Western District of Texas.
The settlement, subject to final documentation and court approval, would settle all claims arising from the purchase or sale of ArthroCare securities of a class of all purchasers of ArthroCare common stock [and call options, and sellers of put options on ArthroCare common stock] between December 11, 2007 and February 18, 2009, inclusive (the Class), except those members of the Class who opt out, for a payment of $74 million to a settlement fund to be created for the settlement. If the settlement is approved, counsel for the plaintiff will apply for an award of attorneys' fees and reimbursement of expenses from the settlement fund.
