ArthroCare (NSDQ:ARTC) and the U.S. Justice Dept. extended by a month the statute of limitations on a federal inquiry from the U.S. Dept. of Justice in to the company’s spinal business.
In January Austin, Texas-based ArthroCare said it was pushing the deal out until March 1. That extension was added to Feb. 27, pushing the deal out to March 30, according to a regulatory filing.
"At this stage of the ongoing investigation by the DOJ, the Company cannot predict its ultimate outcome and is unable to estimate any potential liability the Company may incur," according to the filing.
ArthroCare president & CEO David Fitzgerald told investors during the J.P. Morgan Healthcare conference in San Francisco in January that the DOJ may make such a request, known as a tolling agreement.
"The DOJ criminal investigation that began in December of 2008 is ongoing and we continue to actively cooperate with the investigation," Fitzgerald said . "Although the DOJ has not committed to an end date and may request future tolling agreements, we think it’s possible that the DOJ investigation of the company may complete soon."
ArthroCare has had a spate of legal troubles in recent years, including an SEC investigation that closed in February 2011 and a derivatives matter that closed in December 2011. The company is also facing a federal probe, although few details are yet available in that matter.