Updated April 1, 2013, at 2:10 p.m. with stock activity.
ArthroCare (NSDQ:ARTC) and the U.S. Justice Dept. gave themselves until the end of May to hash out a deal over a criminal probe into ArthroCare’s spinal business.
It’s the 3rd extension of a so-called tolling agreement between the Austin, Texas-based medical device company and the feds that lengthens the the statute of limitations on the investigation.
ArthroCare said again that it can’t predict the outcome of the negotiations and "is unable to estimate any potential liability the company may incur, according to a regulatory filing.
The deal was 1st extended in January and again the following month, until March 30.
ArthroCare president & CEO David Fitzgerald told investors during the J.P. Morgan Healthcare conference in San Francisco early this year that the DOJ could ask for an extension.
"The DOJ criminal investigation that began in December of 2008 is ongoing and we continue to actively cooperate with the investigation," Fitzgerald said at the time. "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.
ARTC shares took a sudden dip in morning trading, losing as much as 2.4% when if briefly sank to $33.96 around 11:45 a.m. EST, down from an opening price of $34.79. Shares had mostly climbed back by about 2:10 p.m. when they were trading at $34.60, down 0.5% on the day.
