INVESTOR ALERT: Howard G. Smith Law Firms Announce Securities Class Action Filing on Behalf of CytoDyn, Inc. (CYDY) Investors
BENSALEM, PA – (COMMERCIAL THREAD) – The law firm of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased CytoDyn, Inc. (“CytoDyn” or the “Company”) (OTC: CYDY) ordinary shares between March 27, 2020 and March 9, 2021, inclusive (the “Class Period”). CytoDyn investors have up to May 17, 2021 file an application as the principal applicant.
Investors experiencing losses on their CytoDyn investments are encouraged to contact the law firms of Howard G. Smith to discuss their legal rights in this class action lawsuit at 888-638-4847 or by email at [email protected]
August 26, 2020, the the Wall Street newspaper reported that despite previous representations, CytoDyn was not being considered for Operation Warp Speed, the federal government’s program to speed up treatment for viruses. According to a senior administration official, “CytoDyn had only obtained a preliminary qualification to be included in the initiative.”
On this news, the CytoDyn share price fell $ 0.66 per share, or 17%, in two consecutive trading sessions to close at $ 3.15, hurting investors.
On September 3, 2020, the United States Securities and Exchange Commission (“SEC”) filed a complaint against Iliad Research and Trading LP (“Iliad”), the lender of CytoDyn, the principal of Iliad John Fife (“Fife ”), And some entities. Specifically, the SEC alleged that Iliad and its related entities were operating as unregistered securities dealers in violation of federal securities laws by purchasing convertible promissory notes, converting the notes into newly issued shares, then quickly selling those shares to the public at a profit.
On November 10, 2020, CytoDyn entered into a modified $ 28.5 million secure convertible promissory note with Fife’s company, Streeterville Capital LLC, a related entity that was not specifically named in the SEC action. against Iliad and Fife.
Following this news, the CytoDyn share price closed at $ 2.02, which is an 80% decline from the time period high.
On March 5, 2020, after the market closed, CytoDyn began issuing press releases describing the results of Phase IIb / III testing data for Leronlimab for the treatment of COVID-19. Masked by positive titers, these releases revealed that the primary endpoint of the study (decrease in all-cause mortality at day 28) was not statistically significant.
Following this news, the company’s stock price fell $ 1.14 per share, or 28%, to close at $ 2.91 on March 8, 2021. On March 9, 2021, shares of CytoDyn fell a further 19% to close at $ 2.35, further hurting investors.
The complaint filed in this class action lawsuit alleges that throughout the class action period, the defendants have made materially false and / or misleading statements touting Leronlimab as a potential treatment for COVID-19 to increase CytoDyn’s stock price while that executives were aggressively selling their stocks. The complaint also alleges that CytoDyn engaged in an unlawful scheme whereby Iliad and other Fife entities operated as an unregistered securities broker for CytoDyn.
If you have purchased CytoDyn Common Stock, have any information or would like to learn more about any such claims, or have any questions regarding this announcement or your rights or interests in any such matters, please contact Howard G. Smith, Esquire , of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, PA 19020, by phone at (215) 638-4847, toll free at (888) 638-4847, or by email at howardsmith @ howardsmithlaw .com, or visit our website at www.howardsmithlaw.com.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.