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Birdbomb
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« on: November 20, 2006, 04:44:50 AM »

SOURCE

Cyberonics CEO, CFO resign[/size]




BOSTON, Nov 20 (Reuters) - Medical device maker Cyberonics Inc. (CYBX.O: Quote, Profile, Research) said on Monday that its chief executive and chief financial officer have resigned, following an investigation that revealed errors in the company's stock option practices.

The news sent the company's stock up 18 percent in early trading.

A review by the company's audit committee showed flaws in its reporting of stock option grants between 1999 and 2003, the company said. The errors mean Cyberonics must restate results for the fiscal years 2000 through 2005.


Chief Executive Robert "Skip" Cummins and Chief Financial Officer Pamela Westbrook resigned, effective immediately.

Cummins will receive $1.7 million cash as part of a severance package that also includes stock, the company said in a regulatory filing.

Cyberonics, which makes an implantable nerve stimulation device to treat epilepsy and depression, named Reese Terry Jr., the company's co-founder and former CEO, as interim CEO. It named John Riccardi as interim CFO.

George Parker III was named interim chief operating officer. The company did not previously have a COO.

Cyberonics also said it is separating the roles of CEO and chairman and has elected Tony Coelho, a director of the company since 1997, to the post of nonexecutive chairman.

Last week, Cyberonics shares jumped following news that billionaire investor Carl Icahn had taken a stake in the company.

The resignations of Cummins and Westbrook come two months after a group of shareholders, led by the hedge fund Metropolitan Capital Advisors, called for some board members to be replaced.

Cyberonics shares have fallen 54 percent over the past 17 months as the company has battled a government probe into its stock options and has fought an uphill struggle to get insurers to pay for its device, known as VNS, as a treatment for depression.

The company's shares rose $4, or 18.5 percent, to $25.58 in early trading on Nasdaq. (Additional reporting by Jennifer Robin Raj in Bangalore)
Last week, Cyberonics shares jumped following news that billionaire investor Carl Icahn had taken a stake in the company.

The resignations of Cummins and Westbrook come two months after a group of shareholders, led by the hedge fund Metropolitan Capital Advisors, called for some board members to be replaced.

Cyberonics shares have fallen 54 percent over the past 17 months as the company has battled a government probe into its stock options and has fought an uphill struggle to get insurers to pay for its device, known as VNS, as a treatment for depression.

The company's shares rose $4, or 18.5 percent, to $25.58 in early trading on Nasdaq. (Additional reporting by Jennifer Robin Raj in Bangalore)
« Last Edit: November 20, 2006, 09:51:42 AM by Birdbomb » Logged

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« Reply #1 on: November 20, 2006, 04:55:49 AM »

More

And More

 
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« Reply #2 on: November 20, 2006, 06:09:56 AM »

MORE

and MORE
« Last Edit: November 20, 2006, 06:11:10 AM by Birdbomb » Logged

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« Reply #3 on: November 20, 2006, 07:39:36 AM »

Quote
There are currently 102 companies under either SEC or DOJ probes for stock option grant practices. The probes are focusing on backdating, or the deliberate dating of stock options so they are artificially increased, making them more valuable for the holder. Backdating is not necessarily illegal, but experts agree that it can be illegal if it is not disclosed to investors.

At least 50 senior executives or directors have left their positions because of backdating issues.



Source




Quote
Cyberonics Inc. reported Monday it will pay former CEO Robert P. Cummins $1.7 million in cash within five days of his resignation. He and another top executive quit the medical device maker last week in the wake of a stock options scandal.

Cummins resigned as chief executive, president and chairman after the Houston-based company said an audit found it had used improper accounting on stock options. Federal regulators are investigating the company's stock option expense practices and the company is moving to restate financial results for the past five years.

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« Reply #4 on: November 20, 2006, 07:47:50 AM »

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"We are pleased that our efforts to instill accountability, improve corporate governance and reestablish the Company's credibility have finally begun to bear fruit. The resignation of Mr. Cummins was an important first step. However, in light of the circumstances surrounding Mr. Cummins' apparent forced resignation -- under the cloud of options spring loading, backdating and financial restatements -- we find the Board's decision to lavishly reward him, with what we estimate to be roughly $5 million in cash and stock, and the accelerated vesting of his options and restricted stock awards, to be inexplicable."

Source
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« Reply #5 on: November 20, 2006, 09:50:56 AM »

And still more
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« Reply #6 on: November 22, 2006, 04:45:20 AM »

USA TODAY

This article is extremely informative as to the history of Skip Cummings and his role in Cyberonics.

But this.....this says it all about the man.....


Quote
....But the letter that Cummins wrote to the FDA was inaccurate on several accounts, he acknowledged during an interview in August.

In that interview, Cummins conceded he did not discover his late mother's body. Rather, Cummins said, the Mercer County, Pa., coroner's office informed him of her death.

He also said he does not know whether his mother was diagnosed with depression, or if her death certificate says she committed suicide. In fact, the death certificate and coroner's report state she died of natural causes.

As for where the term "treatment-resistant depression" he cited comes from, Cummins said, "We invented it."

[/color]
« Last Edit: November 22, 2006, 05:29:15 AM by Birdbomb » Logged

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Bernard
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« Reply #7 on: November 22, 2006, 03:56:36 PM »

I think this shows that a lot of people saw him as a liability to the company:
Quote
The news sent the company's stock up 18 percent in early trading
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What do you know about neurofeedback?
Check out this chart of alternative epilepsy treatments.
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« Reply #8 on: November 28, 2006, 05:09:30 AM »

This just gets better and better.....

Major Cyberonics Shareholders Demand Removal of Kevin Moore as Director and that He Return Fees and Stock Options Awarded While He Was Improperly Serving on BoardTuesday November 28, 10:16 am ET  
With Last Week's Resignation of CEO Cummins, MCA Says Company Took First Step on Path To Improved Corporate Governance, But Still Has Long Way To Go [/b][/size]Read the rest here
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VNS implanted Sept 02, turned off Dec 04, Generator ex-planted Nov 07
Electrodes are in me for LIFE!
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« Reply #9 on: December 26, 2006, 02:41:51 PM »

So where is the wonderboy now?

http://208.101.7.228/boards/showthread.php?t=147590

ROFLMAO! :ROFLMAO:  
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« Reply #10 on: January 29, 2008, 06:25:30 AM »

Messing around with "stock options" does not mean that the VNS device itself is bad.
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