NEW YORK, May 13, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of CytoDyn Inc. ("CytoDyn" or the "Company") (OTCMKTS: CYDY). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether CytoDyn and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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." Although 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."
As the market digested the actual significance of CytoDyn's announcement, the Company's stock price fell $1.70 per share, or 41.98%, over the following two trading sessions, closing at $2.35 per share on March 9, 2021.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP