Large Cyberonics, Inc. (Nasdaq: CYBX) holder Metropolitan Capital Advisors demands in a letter that the Company immediately relieve Kevin Moore of his position as director of the Company. The firm said they want Moore to return the fees and stock options he was awarded during the period when he was "improperly serving as a director".
The firm said if the company doesn't take action in 10 days, they will "bring an action in the Delaware Chancery Court to compel it to do so."
Karen Finerman and Jeffrey Schwarz of Metropolitan Capital Advisors said, "Given Mr. Moore's longstanding close friendship with Robert Cummins -- dating back to their days at Dartmouth together in the 1970's -- we are particularly disturbed that Mr. Moore, who we believe was not lawfully a Member of the Board, served on the Board's Compensation and Nominating and Governance committees and participated in the decision to not only approve the new compensation package for Mr. Cummins in 2005, despite the existing contract having nearly three more years left to run, but his severance package as well."
Metropolitan Capital together with related parties own approximately 7.33% of the outstanding common stock of Cyberonics, Inc.