NEW YORK, March 19, 2021 (GLOBE NEWSWIRE) – Gainey McKenna & Egleston announces that a class action lawsuit has been filed against CytoDyn, Inc. (“CytoDyn” or the “Company”) (OTCQB: CYDY) in the United States Court District of the Western District of Washington on behalf of those who purchased or acquired the securities of CytoDyn between March 27, 2020 and March 9, 2021 inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors under federal securities laws.
The complaint alleges that the defendants made materially false and / or misleading statements, and failed to disclose that: (1) while the company’s stock price was high enough with the hype against COVID-19, long-term shareholders, including CEO Nader Z. Pourhassan and CFO Michael Mulholland, have given up millions of shares; (2) the Company has engaged in an unlawful scheme with its lender, Iliad Research and Trading LP (“Iliad”), and its principal John Fife (“Fife”), in which Iliad and other entities of Fife operated as an unregistered securities broker for the Company; and (3) Iliad obtained a convertible promissory note from the Company and converted the note into newly issued shares of the Company and sold those shares on the public market for a profit, in violation of the broker registration requirements of the laws federal securities.
Investors who have purchased or otherwise acquired shares of CytoDyn during the Class Period should contact the Company before May 17, 2021 time limit for the principal applicant’s request. A principal plaintiff is a representative party acting on behalf of the other members of the class to direct the litigation. If you would like to discuss your rights or interests with respect to this class action lawsuit, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. from Gainey McKenna & Egleston at (212) 983-1300, or by email at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the company.