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 (UNKNOWN:CYBX.DL), 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.