Group of CytoDyn Stockholders Announces Federal Court Dismisses Litigation Brought by Company

Rhea-AI Summary

A group of long-time stockholders of CytoDyn Inc. (OTC: CYDY) has announced their commitment to a proxy contest to elect five director candidates to the Board. Judge Maryellen Noreika approved the dismissal of CYDY’s lawsuit aimed at preventing stockholders from voting for these candidates. The stockholders argue that ending the litigation will conserve corporate resources amid dwindling finances due to past management issues. A separate litigation in Delaware remains pending to ensure stockholder voting rights for the nominated candidates.

Positive

• Judge approved dismissal of CYDY’s lawsuit, allowing stockholders to focus on the proxy contest.
• Nominating stockholders are pushing for director candidates aimed at improving company performance.
• Proposal to elect five independent director nominees may enhance long-term value for CYDY.

Negative

• CYDY has faced years of poor performance attributed to inept management.
• Company finances are dwindling, which raises concerns about its sustainability.

Nominating Stockholders Fully Committed to Proxy Contest and Electing Director Candidates

NEW YORK--(BUSINESS WIRE)-- A group of long-time stockholders (the “Nominating Stockholders” or the “Group”) of CytoDyn Inc. (“CYDY or the “Company”) (OTC: CYDY) that has nominated five highly experienced director candidates to serve on the Company’s Board of Directors today announced that Judge Maryellen Noreika has approved a joint stipulation to dismiss CYDY’s lawsuit in the United States District Court for the District of Delaware. The litigation, which related to disclosures by the Nominating Stockholders, was an attempt by CYDY to prevent stockholders from having the opportunity to vote for the Nominating Stockholders’ director candidates.

The Nominating Stockholders said, “While we believe that we would have prevailed in this litigation, as the disclosures were not necessary, we are pleased to provide CYDY stockholders with additional information and resolve this matter. By ending this meritless litigation, we stop the waste of valuable corporate resources at a time when CYDY’s finances are dwindling due to years of poor performance as a result of inept management. Stockholders can now focus their attention on the future of their company by voting for directors who will act in their best interest by earning FDA approval for Leronlimab, which will improve thousands of lives and generate significant long-term value.”

To ensure that voting rights of all CYDY stockholders can be expressed, the litigation brought by the Nominating Stockholders in the Delaware Court of Chancery remains pending. That litigation seeks to enforce the rights of CYDY stockholders and to allow them to vote for the Group’s nominees after the current CYDY Board issued several communications falsely stating that stockholders cannot do so.

The Nominating Stockholders and their slate of director nominees for the CYDY Board remain fully committed to the proxy contest and the election of the highly qualified nominees. In the coming weeks, the Nominating Stockholders and their team will continue to aggressively make the case for the election of their director nominees and for the positive impact they will have on CYDY’s future.

Stockholders can help enable CYDY to achieve its incredible potential by voting the WHITE proxy card today to elect the Nominating Stockholders’ five independent director nominees. To view the Nominating Stockholders’ proxy statement and other information about the nominees and the Group’s platform, please visit www.advancingll.com.

Stockholders who have questions or require any assistance with voting the WHITE proxy card should contact Okapi Partners LLC at info@okapipartners.com or toll free at (844) 202-7428.

Important Information

Paul Rosenbaum, Jeffrey Beaty, Arthur Wilmes, Thomas Errico, M.D., Bruce Patterson, M.D., Peter Staats, M.D., Melissa Yeager and CCTV Proxy Group, LLC (collectively the “Participants”) have filed a definitive proxy statement and accompanying WHITE proxy card with the Securities and Exchange Commission (the “SEC”) to be used in connection with the solicitation of proxies from the stockholders of CytoDyn Inc. (the “Company”). All stockholders are advised to read the definitive proxy statement and other documents related to the solicitation of proxies. The definitive proxy statement and an accompanying proxy card is available at no charge on the SEC’s website at http://www.sec.gov/. In addition, the Participants will provide copies of the proxy statement, without charge, upon request. Requests for copies should be directed to the Participants’ Proxy Solicitor, Okapi Partners LLC, by calling (844) 202-7428.

Disclaimer

This material does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in any jurisdiction to any person. In addition, the discussions and opinions in this press release and the material contained herein are for general information only and are not intended to provide investment advice. All statements contained in this press release that are not clearly historical in nature or that depend on future events are “forward-looking statements,” which are not guarantees of future performance or results, and the words “anticipate,” “believe,” “expect,” “may,” “could,” and similar expressions are generally intended to identify forward-looking statements. Forward looking statements contained in this release are based on current expectations, speak only as of the date of this press release and involve risks that may cause the actual results to be materially different. Certain information included in this material is based on data obtained from sources considered to be reliable. No representation is made with respect to the accuracy or completeness of such data. The Participants disclaim any obligation to update the information herein and reserve the right to change any of their opinions expressed herein at any time as it deems appropriate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210920005649/en/

Media

Mark Semer/Sam Cohen

Gasthalter & Co.

(212) 257-4170

cydy@gasthalter.com

Investors

Bruce Goldfarb/Chuck Garske

Okapi Partners

(212) 297-0720

info@okapipartners.com

Source: Gasthalter & Co. on behalf of CytoDyn Inc. shareholders

FAQ

What was approved by Judge Maryellen Noreika regarding CYDY?

Judge Maryellen Noreika approved the dismissal of CYDY’s lawsuit, allowing stockholders to vote for the nominated candidates.

What is the main goal of the Nominating Stockholders in the proxy contest for CYDY?

The Nominating Stockholders aim to elect five independent director candidates to the Board to improve company performance and financial stability.

What financial issues are highlighted in the press release about CYDY?

The press release mentions dwindling finances due to years of poor management performance.

What litigation remains pending regarding CYDY's stockholders?

A separate litigation in Delaware seeks to enforce stockholder voting rights for the Nominating Stockholders' nominees.

How can stockholders vote for the Nominating Stockholders' proposals?

Stockholders can vote using the WHITE proxy card as advised in the communications from the Nominating Stockholders.