Cyberonics Sued

Cyberonics, the medical device manufacturer trying to get FDA approval for its vagus nerve implant to be used to treat depression, was sued on June 17 in the United States District Court for the Southern District of Texas. If you bought Cyberonics stock between June 15, 2004, and October 1, 2004, you may be eligible to join in the class action. The Houston Business Journal reported that:

Meanwhile, on July 26, shares of Cyberonics (Nasdaq: CYBX) dropped more than 10 percent after the company revised its financial outlook.

In a July 28 filing with the U.S. Securities and Exchange Commission, Cyberonics said that board director Ronald A. Matricaria resigned on July 24 because he could not “support the direction of the governance practices of the Cyberonics board, in particular its practices regarding CEO compensation and succession.” Robert “Skip” Cummins is Cyberonics’ chairman and CEO.

You can read the story here.