Cyberonics, Inc. NASD: CYBX

A class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of the purchasers of Cyberonics, Inc. (Nasdaq: CYBX - News) 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 acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.