ArthroCare CEO Resigns As Inquiry Into Accounting, Billing Practices Expands
This article was originally published in The Gray Sheet
Veteran health care exec and ArthroCare board member David Fitzgerald will step in as acting CEO of the embattled surgical instrument maker now that former chief exec Michael Baker has resigned in the shadow of an accounting scandal and government investigations
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The former top leaders of ArthroCare have been convicted for working in cahoots with distributors to overstate ArthroCare’s earnings. Both face significant prison time for their roles in the scam, according to the Department of Justice.
The company will pay $30 million, establish a compliance program and cooperate on prosecutions of former executives as part of its resolution of fraud allegations with the Department of Justice. Penalties for ArthroCare were reduced for “extraordinary” cooperation with the feds.
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