SOURCE: Law Offices of Marc S. Henzel

July 14, 2005 09:25 ET

Law Offices of Marc S. Henzel Announces Class Action Lawsuit Against Cyberonics, Inc.

BALA CYNWYD, PA -- (MARKET WIRE) -- July 14, 2005 -- A class action lawsuit was filed in the United States District Court for the Southern District of Texas on behalf of the purchasers of Cyberonics, Inc. (NASDAQ: CYBX) securities during the Class Period between June 15, 2004, through October 1, 2004, inclusive (the "Class").

Cyberonics engages in the design, development, and commercialization of medical devices, which claim to provide therapy, Vagus Nerve Stimulation (VNS), for the treatment of epilepsy and other debilitating neurological and psychiatric disorders. Plaintiff alleges that defendants violated the federal securities laws (Securities Exchange Act of 1934) during the Class Period by failing to disclose and misrepresenting material adverse facts known to defendants or recklessly disregarded by them, including that defendants were engaged in serious violative manufacturing and quality practices that would have a serious negative impact on prospects for the Company's VNC product approval and that, while well aware of true nature of the serious issues facing FDA approval of the VNC system for the depression indication, Company insiders sold over $1.98 million of Company stock during the Class Period. As a result, the Complaint alleges, the value of the Company's stock was materially and artificially inflated during the Class Period.

If you are a member of the class described above, you may, not later than August 16, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

If you have any questions concerning this case or your rights or interests with respect to these and other matters in this notice, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone (888) 643-6735 or (610) 660-8000, by facsimile (610) 660-8080, by e-mail at or visit the firm's website at

Contact Information