Group of CytoDyn Stockholders Files Lawsuit to Force Company to Allow Stockholders to Vote for Alternative Director Nominees

Rhea-AI Summary

A group of long-time stockholders of CytoDyn Inc. (CYDY) filed a lawsuit in the Delaware Court of Chancery to allow voting on their nominated director candidates. The lawsuit challenges CYDY's previous actions to block shareholders from voting and claims the current Board has failed to secure FDA approval for Leronlimab, impacting the Company's value. The Group seeks to reinvigorate CYDY's leadership with five highly qualified nominees to pursue FDA approval and enhance shareholder value.

Positive

• Nominated individuals are highly qualified candidates with potential to improve FDA approval processes.
• The Group is advocating for stockholders' rights to vote, potentially increasing shareholder engagement.

Negative

• The current Board has failed to secure FDA approval for Leronlimab, affecting potential revenue.
• Ongoing legal disputes could distract from business objectives and generate additional costs.

Company Has Sought to Block Stockholders’ Right to Vote for Group’s Highly Qualified Nominees

NEW YORK--(BUSINESS WIRE)-- A group of long-time stockholders (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 it has filed a lawsuit in the Delaware Court of Chancery seeking to force CYDY to allow stockholders to vote for the Group’s nominees. CYDY has previously filed litigation seeking to block the ability of stockholders to vote for the Group’s nominees as an alternative to the current CYDY Board and has issued several communications falsely stating that stockholders cannot do so.

The Group stated, “The current CytoDyn Board has repeatedly failed to secure FDA approval for the Company’s groundbreaking Leronlimab drug, which has the potential to improve the lives of people suffering from several conditions. Given the Board’s value-destructive failures and snowballing legal and regulatory issues, we have nominated five exceptionally qualified candidates to serve on the Board and utilize their considerable expertise to achieve the Company’s core objectives of obtaining FDA approval for Leronlimab and reinvigorating CYDY. We will not stand by while the incumbent Board and management team files meritless lawsuits and issues false press releases, in addition to their corrupt behaviors and efforts to entrench themselves, in order to continue collecting their outsized pay packages. The time has come for stockholders to have this choice and we will fight to protect the stockholders’ fundamental right to vote on CYDY’s leadership while the Company illegally and irresponsibly fights to deprive them from doing so. If the current Board and management team are confident in their performance to date, why are they afraid to let stockholders vote?”

The full complaint filed by the Group can be accessed at www.advancingLL.com/complaint.

CYDY previously commenced a meritless lawsuit in Federal Court in Delaware challenging the Group’s proxy materials. Acting at the direction of the Board, CYDY was clearly forum-shopping to avoid the Chancery Court where certain of the Board’s prior misconduct already has been condemned.

If elected, the Nominating Stockholders’ nominees – Thomas Errico, MD, Bruce Patterson, MD, Paul Rosenbaum, Peter Staats, MD MBA, and Melissa Yeager – will take the steps necessary to earn FDA approval for Leronlimab and enhance long-term value for all stockholders.

The Nominating Stockholders’ website at www.advancingll.com includes information about the nominees and the group’s platform. It will be continuously updated with additional information.

Important Information

Paul Rosenbaum, Jeffrey Beaty, Arthur Wilmes, Thomas Errico, M.D., Bruce Patterson, M.D., Peter Staats, M.D. MBA, 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 to solicit votes for the election of their slate of director nominees at the 2021 annual meeting of stockholders of CytoDyn Inc., a Delaware corporation. All stockholders of the Company are advised to read the definitive proxy statement and other documents related to the solicitation of proxies by the Participants. The definitive proxy statement and an accompanying proxy card is available at no charge on the SEC 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210826005450/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 is the lawsuit filed by stockholders of CytoDyn about?

The lawsuit seeks to allow stockholders to vote for the Group's nominated board candidates, challenging CYDY's attempts to block this.

Who are the nominated candidates for CytoDyn's Board?

The nominees include Thomas Errico, Bruce Patterson, Paul Rosenbaum, Peter Staats, and Melissa Yeager.

How has CytoDyn's current Board performed regarding FDA approvals?

The current Board has reportedly failed to secure FDA approval for Leronlimab, impacting the company's prospects.

What are the risks of the ongoing litigation for CytoDyn shareholders?

The litigation may create distractions and increase costs, affecting the overall business performance.

How does the lawsuit affect CytoDyn's stockholders' rights?

The lawsuit aims to protect stockholders' rights to vote on board leadership, emphasizing shareholder engagement.