CytoDyn settles securities class action following allegations of misleading drug claims / The biotech firm reaches an agreement in principle to resolve claims it deceived investors about the regulatory status and efficacy of its lead drug, leronlimab.

CytoDyn Inc. has reached a $16.5M settlement to resolve a long-running securities class action. The lawsuit alleged that the company and its former executives misled investors regarding the development and FDA approval timeline for its flagship drug, leronlimab, particularly for the treatment of HIV and COVID-19. **The Allegations:** Investors claimed CytoDyn "pumped" its stock price by making false and misleading statements about the completeness of its FDA applications and the results of clinical trials during the height of the pandemic. **The Settlement:** The terms of the agreement are still being finalized, but investors can already [submit claims to participate](https://11th.com/cases/cytodyn-investor-settlement) in the payment process. **Wider Legal Fallout:** This settlement follows the high-profile criminal conviction of former CEO Nader Pourhassan on counts of securities fraud, wire fraud, and insider trading related to the same conduct. While CytoDyn does not admit fault or liability under the deal, the settlement aims to provide compensation for shareholders as the company attempts to pivot toward new clinical trials under fresh leadership. Hoep this info helps!