CytoDyn Board’s Executive Comp Settlement Will Get a Closer Look

CytoDyn Inc. shareholders leading a Delaware lawsuit against current and former members of its board failed to secure immediate approval Wednesday of a settlement resolving claims that they enriched themselves at the expense of public investors through “unjustified and oversized” equity awards.

Vice Chancellor Paul A. Fioravanti withheld his blessing from the deal, which would rescind about 5.4 million out of 9.3 million shares and options in exchange for an end to the derivative case in Delaware Chancery Court. The plaintiffs’ attorneys are also seeking $4.1 million in costs and fees.

Fioravanti didn’t specify the nature of his concerns about ...