NEW YORK--(BUSINESS WIRE)--Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against CytoDyn, Inc. ("CytoDyn” or "the Company") (OTCMKT: CYDY) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired CytoDyn securities between March 27, 2020 and March 9, 2021, inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/cydy.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
On June 30, 2020, Citron Research published a report entitled, "SEC Must Immediately Halt this Stock Promotion Scheme." The Citron Research report stated that "[t]his is a $5 billion market cap company with 10 employees who claim to have the cure for COVID with zero data and a CEO who sold >$30 million of stock ~70% lower than yesterday's closing price. The CEO has made inappropriate promotional claims like ‘this looks the solution to coronavirus' leading into his most recent stock sale." The report alleged that the company is a "big joke" regarding its claim to have developed a cure for COVID-19 with "zero" data related to over-hyped leronlimab. Following this news, CytoDyn stock dropped roughly 34% during intraday trading on June 30, 2020.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose that: (1) while CytoDyn's stock price was sufficiently pumped with the COVID-19 cure hype, long-term shareholders, including CEO Nader Z. Pourhassan and CFO Michael Mulholland, dumped millions of shares; (2) CytoDyn engaged in a wrongful scheme with its lender, Iliad Research and Trading L.P. ("Iliad"), and its principal John Fife ("Fife"), whereby Iliad and other Fife entities operated as an unregistered securities dealer for CytoDyn; and (3) Iliad obtained a convertible promissory note from CytoDyn and converted the note into newly issued shares of CytoDyn and sold those shares into the public market at a profit, in violation of the dealer registration requirements of the federal securities laws.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/cydy or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in CytoDyn you have until May 17, 2021 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.