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 District Court for 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 the federal securities laws.
The Complaint alleges that Defendants made materially false and/or misleading statements, and failed to disclose that: (1) while the Company’s stock price was sufficiently pumped with the COVID-19 cure hype, long-term shareholders, including CEO Nader Z. Pourhassan and CFO Michael Mulholland, dumped millions of shares; (2) the Company engaged in a wrongful scheme with its lender, Iliad Research and Trading L.P. (“Iliad”), and its principal John Fife (“Fife”), whereby Iliad and other Fife entities operated as an unregistered securities dealer 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 into the public market at a profit, in violation of the dealer registration requirements of the federal securities laws.
Investors who purchased or otherwise acquired shares of CytoDyn during the Class Period should contact the Firm prior to the May 17, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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