CytoDyn Inc. (CYDY)
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of CytoDyn Inc. ("CytoDyn" or "the Company") (OTCMKTS: CYDY). Investors who purchased CytoDyn securities are encouraged to obtain additional information and assist the investigation.
The investigation concerns whether CytoDyn has violated federal securities laws.
On August 6, 2022, CytoDyn disclosed in a filing with the U.S. Securities and Exchange Commission “that the Company’s previously issued consolidated audited financial statements for (1) the fiscal year ended May 31, 2021, which were included in the Company’s Annual Report on Form 10-K filed on July 30, 2021, and (2) the Company’s previously issued unaudited interim consolidated financial statements as of and for the quarters ended November 30, 2020, February 28, 2021, August 31, 2021, November 30, 2021, and February 28, 2022, will be restated and, accordingly, that the foregoing financial statements should no longer be relied upon.” CytoDyn stated that “[d]uring the preparation and audit of the annual financial statements as of and for the fiscal year ended May 31, 2022, the Company concluded that a material error was identified in how the Company was accounting for common stock issued to settle certain convertible note obligations dating back to fiscal year 2021. The Company had been accounting for these transactions in accordance with debt extinguishment accounting. However, although the contractual terms did not explicitly describe the transactions as induced conversions, the transactions should be accounted for as induced conversions rather than extinguishments of debt and are therefore subject to induced conversion accounting.” On this news, CytoDyn’s stock price fell $0.23 per share, or 20.18%, to close at $0.91 per share on August 8, 2022.
If you are aware of any facts relating to this investigation or purchased CytoDyn shares you can assist this investigation. You can also contact Peretz Bronstein or his law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC represents investors in securities fraud class actions and shareholder derivative suits. The firm has recovered hundreds of millions of dollars for investors nationwide. Attorney advertising. Prior results do not guarantee similar outcomes.