The allegations open Cyberonics to regulatory investigation and potentially far-reaching future harm to the shareholders of the company, according to Zamansky.
New York, New York (PRWEB) February 21, 2013
Zamansky & Associates LLC announces that it is investigating Cyberonics, Inc., on behalf of shareholders for potential breaches of fiduciary duties owed to them and for potential securities fraud violations. Recently, Cyberonics was sued by a former employee, Andrew Hagerty, for breach of contract and wrongful termination in violation of public policy. The lawsuit is titled, Andrew Hagerty v. Cyberonics, Inc., Docket No. 12-cv-11465 (D.C. Mass.)
In his Amended Complaint, Mr. Hagerty alleges that he was terminated in retaliation for his refusal to engage in illegal conduct to sell replacement batteries for implanted medical devices. He alleges that Cyberonics knew and pressured him and at least one other top salesman to generate sales of replacement batteries, through conduct that violated medical standards and its own policies. This pressure, he claims, resulted from Cyberonics change in policy to give bonuses to its sales force for sales of replacement batteries. As a result, his Amended Complaint seeks damages for his wrongful termination.
On February 4, 2013, Cyberonics issued a press release announcing that the lawsuit was voluntarily dismissed, and that the parties were subjecting the dispute to binding arbitration. Arbitration is a private non-public proceeding, so investors will no way to track the progress of Mr. Hagerty’s complaint.
Cyberonics’ stock chart on YahooFinance reflects that, over the last few months, its price has fallen to $45 per share from over $55 per share. According to Jake Zamansky, Cyberonics’ shareholders should be concerned about Mr. Hagerty’s allegations because they call into question the accuracy and sustainability of the company’s earnings and growth. “The allegations open Cyberonics to regulatory investigation and potentially far-reaching future harm to the shareholders of the company,” according to Zamansky.
What A Cyberonics’ Shareholder Can Do
If you are a shareholder of Cyberonics, Inc. and would like to discuss your legal rights or provide information to assist the investigation, you may, without obligation or cost to you, email email@example.com or call the law firm at (212) 742-1414.
About Zamansky & Associates
Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud, class action and shareholder derivative litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
To learn more about Zamansky, please visit our website, http://www.zamansky.com.
Zamansky & Associates, LLC
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Jake Zamansky, 212-742-1414