NEW YORK–(BUSINESS WIRE)–Bragar Eagel & Squire, PC, a nationally recognized stockholder rights law firm, is investigating potential claims against CytoDyn, Inc. (“CytoDyn” or the “Company”) (OTCMKTS: CYDY) on behalf of CytoDyn stockholders. Our investigation concerns whether CytoDyn has violated the federal securities laws and/or engaged in other unlawful business practices.
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On August 6, 2022, CytoDyn disclosed in a filing with the US 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 purchased or otherwise acquired CytoDyn shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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