Event-driven risks are pervasive in the health care industry, with the most notable being FDA approval decisions for prospective drugs or medical devices. For medical technology company Cyberonics (NASDAQ:CYBX), event-driven risk was a bit different. The company -- which already has a neuro-stimulation device approved and on the market -- has been dealing with the dark cloud of a serious lawsuit brought on by a former employee.

Today, that cloud was lifted when the suit was voluntarily dismissed, and shares are surging higher as a result. However, as Brenton Flynn discusses in the video below, the company has plenty of additional obstacles to overcome as it looks to justify a premium valuation.

Brenton Flynn has no position in any stocks mentioned. The Motley Fool owns shares of Medtronic. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.