(By Balachander) Cyberonics Inc. (NASDAQ: CYBX), a maker of nerve stimulation devices, said a lawsuit filed by former employee Andrew Hagerty was voluntarily dismissed without prejudice by Hagerty.
The Houston, Texas-based company said Hagerty's claims are subject to binding arbitration. Hagerty, a former sales representative at the company, has the right to re-file the lawsuit or to pursue a resolution through binding arbitration.
The suit was filed in federal district court in Massachusetts.
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"Hagerty's decision to terminate the lawsuit removes an overhang from Cyberonics shares," Jefferies wrote in a note seen by the theflyonthewall.com.
Cyberonics developed and markets the VNS Therapy System, which is FDA-approved to treat refractory epilepsy and treatment-resistant depression. The VNS Therapy System uses a surgically implanted medical device that delivers pulsed electrical signals to the vagus nerve.
The stock, which has been trading in the 52-week range of $33.48 to $56.73, traded $3.71 higher, or 8.37 percent, at $47.63 on Monday.