Texas Judge approves ArthroCare’s $74M shareholder lawsuit settlement
Texas judge Sam Sparks of the U.S District Court for the Western District of Texas affirmed a $74 million settlement in a shareholder lawsuit accusing ArthroCare (NSDQ:ARTC) and a pair of its executives of falsely inflating share prices.
Lead plaintiff DeKalb County Pension Fund accused ArthroCare, former president & CEO Michael Baker and former senior VP and CFO Michael Gluk of making "public statements that were materially false and misleading."
The lawsuit further alleges that defendants "failed to disclose numerous fraudulent and improper practices within the Company, thus causing it to file materially false and misleading financial statements, thereby resulting in a loss," according to the class action lawsuit web page.
ArthroCare must pay $74 million, or about $3.49 per share, to settle the shareholder’s claims.
DePuy hip settlements ahead
Initial details about how Johnson & Johnson (NYSE:JNJ) will divvy up the $2 billion to $3 billion fund set aside for lawsuits surrounding its DePuy Orthopaedics hip implant recall may come as early as the 1st quarter of 2013, according to the lawsuit settlement funding company Legal-Bay LLC.
Settlements in some cases may top $1 million and the average settlement is likely to be around $500,000, according to a press release.
Allscripts buckles to HealthCor pressure, adds 3 to board
Under pressure from a proxy fight by shareholder HealthCor Partners, Allscripts nominated Stuart Bascomb, David Stevens and Randy Thurman to its board of directors.