Frank R. Cruz Law Firms Announce Securities Class Action Filing on Behalf of CytoDyn, Inc. (CYDY) Investors
LOS ANGELES–(COMMERCIAL THREAD) –Frank R. Cruz’s law firms announces that a class action lawsuit has been filed on behalf of the persons and entities who have purchased or otherwise acquired 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.
If you are a shareholder who has suffered a loss, click on here participate.
On August 26, 2020, the Wall Street Journal reported that, despite previous representations, CytoDyn was not being considered for Operation Warp Speed, the federal government’s program to speed up antivirus treatments. 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 certain 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.
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If you have purchased CytoDyn Securities during the Class Period, you can go to Court no later than May 17, 2021 ask the Court to appoint you as the principal plaintiff. To be a member of the Class, you do not need to take any action at this time; you can retain the services of a lawyer of your choice or take no action and remain an absent member of the group. If you have purchased CytoDyn securities, have any information or would like to learn more about these claims, or have any questions regarding this announcement or your rights or interests in any such matters, please contact Frank R. Cruz, of The Law Offices of Frank R Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067 at 310-914-5007, by email at [email protected], or visit our website at www.frankcruzlaw.com. If you are applying by email, please include your mailing address, phone number and number of shares purchased.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.