Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against CytoDyn Inc.
Radnor, Pennsylvania – (Newsfile Corp. – April 3, 2021) – Law firm Kessler Topaz Meltzer & Check, LLP advises investors that a class action lawsuit has been filed against CytoDyn Inc. (OTCQB: CYDY) for securities fraud (“CytoDyn”) on behalf of those who purchased or acquired CytoDyn common stock between March 27, 2020 and March 9, 2021 (including the “Class Period”).
Deadline Reminder: Investors who have purchased or acquired CytoDyn common shares during the class period can apply for appointment as principal representative of the class by May 17, 2021 at the latest. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; by email to email@example.com; or click on https://www.ktmc.com/cytodyn-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=cytodyn.
CytoDyn is a biotechnology company focused on the development and commercialization of a drug called “Leronlimab” that has long been promoted as a potential therapy for HIV patients. Since the beginning of the global COVID-19 pandemic, CytoDyn has started aggressively promoting Leronlimab as a treatment for COVID-19. Following CytoDyn’s linchpin of hyping Leronlimab to treat COVID-19, CytoDyn’s share price rose exponentially.
Throughout the classroom, CytoDyn continued to tout Leronlimab as a potential treatment for COVID-19 and increased CytoDyn’s share price while executives aggressively sold shares. While CytoDyn’s share price was well pumped with the COVID-19 cure hype, long-term shareholders including defendants Nader Z. Pourhassan, CytoDyn’s chief executive officer and Michael Mulholland, CytoDyn’s chief financial officer, have dumped millions of shares.
After the payout by CytoDyn-Insider and long-term shareholders, the defendant’s system began to dissolve. On Friday, March 5, 2021, after close of trading and continued this weekend, CytoDyn issued press releases describing the results of the Phase IIb / III data on Leronlimab. The press releases had titles such as “Cytodyn To Submit to MHRA and Interim Order (IO) Accelerated Rolling Review at Health Canada for COVID-19” and “Cytodyn’s Phase 3 Study Demonstrates Safety, 24% Reduction in Mortality and Faster Discharge from the hospital for mechanically ventilated critically ill COVID-19 patients treated with leronlimab. “However, the press releases hid the disclosure that the study’s primary endpoint, which decreased all-cause mortality on day 28, was not statistically significant . Following the release of its press releases, CytoDyn was accused of “massaging the data” and getting good news out of a failed study, the results of which CytoDyn reportedly based on pending regulatory discussions.
The story goes on
After the data was released, CytoDyn’s common stock fell over 28% to close at $ 2.91 on March 8, 2021. On March 9, 2021, the price of CytoDyn’s common stock fell further, falling another 19% at $ 2.35.
The complaint alleges that throughout the classroom, the defendants made false and / or misleading statements and / or failed to disclose that CytoDyn’s development and commercialization of Leronlimab for the treatment of COVID-19 was not economical.
CytoDyn investors can attempt to be appointed principal representative of the class by May 17, 2021 at the latest by Kessler Topaz Meltzer & Check, LLP or other lawyer, or they can choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class actions in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has reclaimed billions of dollars on behalf of institutional and individual investors from the US and around the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. Further information on Kessler Topaz Meltzer & Check, LLP can be found at www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
The source version of this press release can be found at https://www.newsfilecorp.com/release/79165