April 2, 2012
SEC Seeks Clawback from Two Former ArthroCare Execs under SOX 304
The SEC sued two former executives at an Austin, Texas-based surgical products manufacturer to recover bonus compensation and stock sale profits they received during an accounting fraud at the company. The SEC previously brought a settled enforcement action against ArthroCare later charged two former ArthroCare executives with perpetrating a fraudulent scheme to overstate ArthroCare’s revenues and earnings.
In today's action, filed in federal court in Austin, former ArthroCare Corporation CEO Michael A. Baker and former CFO Michael Gluk are not charged with personal misconduct, but they are still required under Section 304 of the Sarbanes-Oxley Act to reimburse ArthroCare for bonuses and stock profits that they received after the company filed fraudulent financial statements during 2006, 2007, and the first quarter of 2008.
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