CYTODYN, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of CytoDyn, Inc. (OTCQB: CYDY) between March 27, 2020 and March 9, 2021. The lawsuit seeks to recover CytoDyn, Inc.’s shareholders’ investment losses.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of CytoDyn, Inc. (“CytoDyn” or the “Company”) (OTCQB: CYDY) from March 27, 2020 through March 9, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Western District of Washington alleges violations of the Securities Exchange Act of 1934.
On March 5, 2021, CytoDyn issued a press release providing an update on its product “Vyrologix (leronlimab-PRO 140), a CCR5 antagonist with the potential for multiple therapeutic indications.” The press release stated, in part, that “the Phase 3 trial of leronlimab for the treatment of severe-to-critical patients with COVID-19 demonstrated continued safety, substantial improvement in the survival rate, and faster hospital discharge in critically ill COVID-19 patients.” While the press release touted purportedly positive results, industry observers and analysts quickly characterized the Company’s press release as misleading. For example, on March 8, 2021, Seeking Alpha published an article by Paul Santos entitled “CytoDyn: Parsing Failure.” The article asserted that Cytodyn’s “leronlimab Phase 3 trial on COVID-19 severe-to-critical patients failed . . . to meet both its primary endpoint and all secondary endpoints with any statistical significance” and described the Company as having effectively “buried” the results in its press release. Santos noted that “[a] normal biotech company would have stated this clearly, both in its PR titles and in their text bodies. Cytodyn, however, did something else.”
On this news, CytoDyn’s stock price fell $1.70 per share, or 41.98 %, over the next two trading sessions, closing at $2.35 per share on March 9, 2021.
The complaint, filed on March 17, 2021, alleges that defendants violated provisions of the Exchange Act by making false and misleading statements concerning leronlimab being used as a treatment for COVID-19.
If you wish to serve as lead plaintiff, you must move the Court no later than May 17, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Matthew E. Guarnero
Bernstein Liebhard LLP