Nasdaq Closes Review of ArthroCare

Surgical products maker ArthroCare Corp. said Tuesday the Nasdaq Stock Exchange closed its review of the company’s DiscoCare unit.

In January, the company bought the third-party billing and reimbursement service provider for $25 million. Media reports in December said that ArthroCare may have engaged in inappropriate business practices with DiscoCare. ArthroCare said it had a prior manufacturer-distributor relationship with DiscoCare, which is run by an ex-manager of ArthroCare.

The key issue in the allegations was the percentage of business ArthroCare got through its relationship with DiscoCare, which it has not been disclosed.

Shares of ArthroCare rose $1.28, or 3.8 percent, to $35.02 in after-hours trading. The stock rose 5 cents to close at $33.74 during the regular session.

Source: AP

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