CytoDyn ($CYDY) Investor Settlement
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.
Frequently Asked Questions
All persons and entities that purchased or otherwise acquired the common stock of CytoDyn between March 27, 2020 and March 30, 2022, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.04 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.16 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.