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CYDY.TO
id: 1789

CytoDyn ($CYDY) Investor Settlement

The settlement terms have been submitted to the court for approval.
$500,000
Cash Settlement
W.D. Washington
Court
3:21-cv-05190
Case number
03/27/2020
Class period Start
03/30/2022
Class period End
CytoDyn has reached a settlement with $CYDY investors over claims that it misled them about the regulatory status, safety, and efficacy of its HIV and COVID-19 drug candidate, leronlimab.

Outline:

CytoDyn touted leronlimab for HIV and COVID-19 despite no approval, and investors allege the company misled the market about trial results, FDA interactions, and the drug’s prospects. After FDA scrutiny and disappointing outcomes, $CYDY fell sharply—down over 25% after a March 30, 2021 FDA statement—and the case later moved toward a tentative settlement.

Timeline:

2020–2021: CytoDyn heavily promoted leronlimab as a treatment for HIV and COVID-19.
March 30, 2021: The FDA issued a statement criticizing CytoDyn’s claims about leronlimab’s efficacy. Following the FDA’s statement: $CYDY dropped by over 25%.
2021–2022: Investors filed claims alleging the company misled the public and overstated regulatory progress.
2024: CytoDyn agreed to a tentative settlement to resolve the claims.

Background:

CytoDyn positioned leronlimab as a breakthrough therapy for HIV and COVID-19 and highlighted what it described as positive clinical trial results and ongoing discussions with the FDA. Investors were led to believe the drug had strong prospects and meaningful regulatory momentum.

On March 30, 2021, the FDA publicly rebuked the company, stating CytoDyn’s public claims were misleading and not supported by the data submitted. The description also states the FDA emphasized the data showed no benefit in CytoDyn’s COVID-19 treatment trials and criticized promotional practices for an unapproved drug.

According to the description, the FDA’s statement and related scrutiny damaged CytoDyn’s credibility and triggered sharp losses in $CYDY, including a decline of more than 25% following the statement. Investors later alleged the company’s leaders overstated leronlimab’s potential, mischaracterized regulatory interactions, and withheld critical information about trial results and the likelihood of approval.

What Can Investors Expect Now?

CytoDyn has reached a settlement with $CYDY investors to resolve claims tied to statements about leronlimab’s regulatory status, safety, and efficacy for HIV and COVID-19.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Case Type
US Securities Class Action
Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.04
Filing date
03/17/2021
Plaintiffs
Douglas Taylor
Attorneys
Pomerantz LLP
Defendants
Nader Pourhassan; Michael Mulholland; Scott A. Kelly
Judge
Richard Seeborg
Administrator
Strategic Claims Services
Trades matching type
FIFO

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