SAN FRANCISCO, June 10, 2021 /PRNewswire/ -- Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of CytoDyn Inc. (OTC: CYDY) relating to possible false statements to investors and insider trading by two officers and a director.
In or around March 2020, in the early stages of the COVID-19 pandemic, CytoDyn attempted to pivot its existing drug candidate, leronlimab, which was originally developed for the treatment of HIV, to be used instead as a treatment for severe cases of COVID-19. According to two securities class action lawsuits on file in the U.S. District Court for the Western District of Washington, plaintiffs allege that CytoDyn touted leronlimab for this purpose through March 9, 2021 by, among other things, selectively disclosing the progress of clinical trials and the drug's purported efficacy in certain narrow population subgroups. However, on May 17, 2021, the U.S. Food and Drug Administration advised that, contrary to CytoDyn's public statements, "it has become clear that the data currently available do not support the clinical benefit of leronlimab for the treatment of COVID-19." The FDA further advised that even in the narrow subgroups identified by CytoDyn, "[n]one of these analyses met statistical significance when using established and reliable analytical methods." During the same period when CytoDyn was touting the drug as a potential COVID-19 treatment, three high-level CytoDyn insiders sold more than $29.9 million of company stock at prices inflated by the alleged false and misleading statements.
The Schubert Firm is investigating potential breaches of fiduciary duty by the company's officers and directors in connection with these allegations.
About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents shareholders, employees, and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The firm is based in San Francisco, and with the help of co-counsel, litigates cases nationwide.
Alexandra K. Green
Schubert Jonckheer & Kolbe LLP
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SOURCE Schubert Jonckheer & Kolbe LLP