Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against CytoDyn Inc.
RADNOR, Pa .– (BUSINESS WIRE) – The law firm of Kessler Topaz Meltzer & Check, LLP, announces that a class action lawsuit has been filed against CytoDyn Inc. (OTCMKTS: CYDY) (“CytoDyn”) in the US District Court for the Western District of Washington. ) on behalf of those who purchased or acquired CytoDyn common shares between March 27, 2020 and March 9, 2021 (including the “Class Period”).
Deadline reminder: Investors who bought or acquired CytoDyn common shares during the class period can, no later than May 17, 2021try to be appointed as the plaintiff’s principal representative of the class. 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 firstname.lastname@example.org; 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.
The lesson begins on March 27, 2020 when CytoDyn removed a press release regarding the use of Leronlimab in treating COVID-19 patients entitled “Leronlimab in seven patients with severe COVID-19 evidence in two intubated patients in the intensive care unit from intensive care and released extubated with reduced pneumonia. “Throughout the classroom, CytoDyn continued to tout Leronlimab as a potential treatment for COVID-19, increasing 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, 2020, 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 File Expedited Ongoing Review to MHRA and Interim Order (IO) at Health Canada for COVID-19” and “Cytodyn’s Phase 3 Study Demonstrates Safety, A 24% Reduction in Mortality and a 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 – reduction in all-cause mortality on day 28 – was not statistically significant. Following the publication of its press releases, CytoDyn was accused of “massaging the data” and forging good news from a failed study, the results of which CytoDyn reportedly based on pending regulatory discussions.
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 no later than May 17, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or 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. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.