NEW YORK, April 08, 2021 (GLOBE NEWSWIRE) — Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, is investigating claims of violations of federal securities laws on behalf of investors of CytoDyn Inc. (“CytoDyn” or the “Company”) (OTC:CYDY).
CytoDyn Inc. is a biotech company primarily focused on the development and commercialization of a drug named Leronlimab.
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 Complaint alleges that through the use of Company press releases and other information released by CytoDyn’s partners, CytoDyn has released, or caused to be released, materially false and misleading statements in violation of the federal securities laws.
If you are a shareholder of CytoDyn who purchased CytoDyn securities between March 27, 2020 and March 9, 2021, inclusive, you have until May 11, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. To participate, learn more, or discuss the issues surrounding the investigation, please contact our attorneys at (914) 733-7256 or via email at email@example.com.
Whistleblowers: Persons with non-public information regarding CytoDyn should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of investors.
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