SAN DIEGO, Dec. 18, 2006 (PRIME NEWSWIRE) -- Court-appointed Lead Plaintiffs in In re Cyberonics, Inc. Securities Litigation, Master File No. H-0502121, U.S. District Court for the Southern District of Texas, announce the filing of a first amended class action complaint on behalf of purchasers of Cyberonics, Inc. ("Cyberonics") (Nasdaq:CYBX) securities during the period from February 5, 2004, through August 1, 2006, inclusive.
Investors who purchased Cyberonics securities during the expanded Class Period and suffered damages may move the Court for consideration to be appointed as a lead plaintiff no later than 60 days from today. Any purported class member who wishes to do so may move the Court to serve as lead plaintiff through counsel of their choice, including current Court-appointed Co-Lead Counsel, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott partner David Scott (drscott@scott-scott.com, 800/404-7770, 860/537-5537) or Finkelstein & Krinsk partner Jeffrey R. Krinsk (jrk@classactionlaw.com, 877/493-5366, 619/238-1333). There is no cost or fee to you.
The First Amended Complaint ("Amended Complaint") charges Cyberonics and certain of its current and former officers and directors with violations of the Securities Exchange Act of 1934. The Amended Complaint alleges defendants failed to disclose and misrepresented material information known to defendants regarding FDA review and approval of a new use for the company's Vagus Nerve Stimulation ("VNS") device to treat depression, the marketability of the VNS device and medical insurance "Payers" coverage decisions for the device. The Amended Complaint also alleges improper conduct related to the award of stock option grants to certain senior Cyberonics officers, including that the options were fraudulently backdated and that the company had flawed and defective internal controls over accounting and for the options. This resulted in the improper reporting of executive compensation and expenses and violated generally accepted accounting practices ("GAAP").
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca/