Cyberonics stock option query widens
This article was originally published in The Gray Sheet
Executive Summary
On the heels of a recently initiated "informal" Securities & Exchange Commission inquiry into the firm's issuance of stock options in June 2004, Cyberonics receives a subpoena June 26 from the U.S. Attorney's Office for the Southern District of New York on the same issue. The options were offered to executives on the same day that the firm's VNS Therapy device for depression went before FDA's Neurological Devices Panel. Trading for outside investors had been suspended during the panel review. Cyberonics claims that the grants were approved by the board of directors without management influence (1"The Gray Sheet" June 19, 2006, In Brief)...