DOJ Investigation Contributes to ArthroCare’s $11M Q2 Loss

Austin, Texas-based ArthroCare reported an operating loss of $11.1 million in the second quarter after posting a nearly $18 million gain during the same period last year.

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Costs related to a Department of Justice investigation and restatement were $26.3 million this quarter, compared to $1.1 million in 2012. The company estimates the final resolution of the investigation could be $30 million.

The company’s total revenue was up slightly this quarter, from $91.7 million to $92.1 million. Second quarter product sales remained the same for both 2012 and 2013 at $87.5 million.

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