Wednesday, October 27, 2021
Oct. 27, 2021

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CytoDyn suing group of investors

Drug developer alleges ‘illegal proxy contest’ to take over board

By , Columbian Assistant Metro Editor
Published:

Vancouver-based CytoDyn is suing a group of investors that attempted to take control of its board of directors, according to CytoDyn’s claims.

The lawsuit, filed in the United States District Court for the District of Delaware, claims that a group led by Paul Rosenbaum and Bruce Patterson sought to mislead shareholders and wage “an illegal proxy contest to take control” of the company’s board, according to a news release from CytoDyn.

CytoDyn develops an HIV treatment drug, Leronlimab, and has been testing it for other applications, including use as an anti-inflammatory agent to prevent symptoms of COVID-19.

Last week, CytoDyn said it was subpoenaed by the U.S. Securities and Exchange Commission and the U.S. Department of Justice to provide evidence for its statements about having treatments for COVID-19.

In the same report, the company said the net loss incurred during the fiscal year ending May 31, 2021, was about $154.7 million.

Last month, the company touted what it called “impressive” results from studies for COVID-19 treatment using Leronlimab.

CytoDyn, a publicly traded company, has about half of its 24 full-time employees working from its headquarters at 1111 Main St., Suite 660.

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