Facts

Purchasers of shares of stock in AtriCure Inc., which could be traced to an initial public offering by AtriCure, filed an action against AtriCure alleging securities law violations. Plaintiffs purchased stock during the period of Aug. 5, 2005 and Feb. 16, 2006.

PLAINTIFF'S CONTENTIONS:
Plaintiffs alleged that the registration statements and prospectus for defendant's initial public offering had material misrepresentations and/or omissions. Plaintiffs claimed that defendant misrepresented the fact that Cleveland Clinic, which is where several procedures with defendant's products had been undertaken, had invested in defendant, and that its physicians had been paid to advise the company. Further, plaintiff argued that this misconduct resulted in inflation of common stock, which in turn, resulted in financial damage to plaintiffs.

DEFENDANT'S CONTENTIONS:
Defendant denied the allegations of wrongdoing.

Result

The parties reached a settlement amounting to $2,000,000 in cash and interest. Recovery by plaintiffs was dependent on the quantity of shares of stock purchased by each individual plaintiff within the class period, and timing of sales of shares.