Cyberonics, a Houston-based maker of a controversial medical device for the treatment of depression says charges that it backdated stock options are "inaccurate and without merit." In a research note last week, SunTrust Robinson Humphrey analyst Amit Hazan questioned the timing of grants the company made to executives around the time the company won FDA approval for its Vagus Nerve Stimulation system. Hazan writes that the Cyberonics board approved options for three key executives dated June 14, a day before the company's stock soared on word of the FDA decision.
- see this article [1] from Red Herring.com
PLUS: This morning the SEC announced that it will investigate Cybertronics. Article [2]
Links:
[1] http://www.redherring.com/Article.aspx?a=17170&hed=Cyberonics%20Denies%20Impropriety
[2] http://today.reuters.com/investing/financeArticle.aspx?type=governmentFilingsNews&storyID=2006-06-12T125526Z_01_N12282707_RTRIDST_0_HEALTH-CYBERONICS-UPDATE-1.XML