5th Circ. Upholds Dismissal Of Cyberonics Class Action

Law360, New York (September 10, 2008, 12:00 AM EDT) -- A federal appeals court has backed a district court's decision to dismiss with prejudice a securities class action against Cyberonics Inc., which included allegations of stock option backdating following a drop in the company's stock price.

The class action, first brought in June 2005 in the U.S. District Court for the Southern District of Texas, alleged the company made false and misleading statements regarding its Vagus Nerve Stimulation Therapy System. An amended complaint in 2006 included the allegations of stock option backdating.

The amended complaint was...
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