AtriCure, Inc. (AtriCure) has reached a tentative agreement with the Department of Justice (DOJ) to resolve the issues raised in the DOJ's investigation and the related complaint regarding the marketing of the company's surgical ablation devices. The agreement includes AtriCure's assertion that the company and its employees have not engaged in any wrongdoing or illegal activity.
Pursuant to the tentative agreement, AtriCure would pay $3.8 million plus interest over a five-year period. Payments during the five-year period, inclusive of interest, would be $0.5 million, $0.5 million, $0.65 million, $1.0 million and $1.5 million, respectively. AtriCure has recorded a settlement reserve of $3.8 million related to the agreement in its financial statements for its quarter ended September 30, 2009. Further, as is typical of settlements of this nature, AtriCure has agreed, subject to completion and approval of a written agreement, to enter into a corporate integrity agreement with the Office of Inspector General of the Department of Health and Human Services.