A Medical Device Daily
Endocare (Irvine, California), a developer of minimally invasive tissue and tumor ablation systems, said it reached an agreement with the regional staff of the Securities and Exchange Commission (SEC) for a settlement that will be recommended to the SEC.
Principle terms include: payment of $750,001, consisting of $1 in disgorgement and $750,000 in civil penalties; agreeing to a stipulated judgment enjoining future violations of securities laws; and agreeing to maintain improvements in internal controls, which, Endocare said, “have previously been implemented.”
The settlement – requiring no admission or denial of wrongdoing – resolves claims against the company relating to an SEC investigation begun in January 2003.
Endocare initially has concentrated on developing devices for the treatment of prostate cancer and says its technologies have applications in the ablation of tumors in the kidney, lung, liver and bone.
In another SEC action, Schick Technologies (Long Island City, New York) reported reaching a settlement resolving claims against it in an SEC civil action.
Neither admitting or denying the allegations, Schick consents to an order enjoining it from violating books and records, periodic reporting and internal control regulations; the settlement requires no monetary payment.
Jeffrey Slovin, president and CEO, said: “In the years since the company’s 1999 restatement, we have taken the necessary steps to ensure that our internal controls are strong and effective.”
The SEC filed the action against the company, its former CEO and its former vice president of sales and marketing in U.S. District Court for the Eastern District of New York in late 2003. The filing followed a multi-year SEC investigation launched in 1999, relating to Schick’s restatement of earnings for interim periods of FY99.
Schick manufactures digital radiographic imaging systems and devices for the dental and medical markets.