According to a press release by a law firm there is an investigation on behalf of ArthroCare Corp. (NASDAQ: ARTC) investors who purchased ArthroCare stock on or after December 18, 2003 concerning possible securities law violations by ArthroCare Corp.

Prior to the investigation there was a class action lawsuit against the ArthroCare Corp. in early 2008, in the United States District Court for the Southern District of Florida, filed, alleging that ArthroCare had materially overstated its financial results through the improper recognition of revenue.
The investigation focuses on a press release by. ArthroCare Corp. ArthroCare announced an expansion of the periods covered by the restatement it had previously announced on July 21, 2008. According to the ArthroCare Corp s Audit Committee, its financial statements for the fiscal years ended December 31, 2000 through December 31, 2005, for each of the quarters of the fiscal years ended December 31, 2000 through December 31, 2005, and for the two quarters ended June 30, 2006 can no longer be relied upon. ArthroCare Corp also announced the resignation of three of its officers, including its CFO, as well as the receipt of two subpoenas from the U.S. Attorney for the Southern District of Florida for the production of documents relating to DiscoCare, Inc.
As a result of ArthroCares disclosures concerning the restatement of its reported financial results, so the lawsuit, the price of the ArthroCare Corps stock has fallen from $16.23 to as low as $4.73. During the period under investigation, ArthroCares stock traded as high as $64.84 on October 3, 2007.