CytoDyn Ex-CEO Wins Appeal Over Short-Swing Stock Sale Profits

CytoDyn Inc.'s former chief executive dodged securities litigation brought by investors seeking the return of millions in “short-swing” profits, when a federal appeals court in San Francisco ruled Friday that his stock sales were covered by an exemption for board-authorized transactions.

The U.S. Court of Appeals for the Ninth Circuit affirmed a decision by Judge James L. Robart, who held that ex-CEO Nader Z. Pourhassan complied with federal short-swing regulations when he sold 5 million shares at a profit four months after the company awarded him 4 million options and warrants.

Pourhassan—formerly the focus of a series of Delaware investor ...