NEW YORK — Medical device maker ArthroCare said Tuesday it will pay a $30 million fine to resolve an investigation by the U.S. Department of Justice into alleged securities fraud by its former management.
The Justice Department is charging the company with one count of conspiracy to commit securities fraud and wire fraud, but it will enter into a two-year deferred prosecution agreement with ArthroCare. If ArthroCare meets requirements set by the Justice Department, it won’t bring charges against the Austin, Texas-based company.
ArthroCare Corp. said the deal will end the Justice Department’s investigation, which was first made public in December 2008. Its shares gained $4.42, or 10.9 percent, to $45 in afternoon trading.