Bloomberg Law
April 30, 2020, 9:31 PM

CytoDyn Executives Sued for ‘Oversized’ Stock Awards

David McAfee
David McAfee
Staff Correspondent

CytoDyn Inc.’s board of directors and other executives were hit with a derivative action in Delaware Chancery court by a group of stockholders who said the company insiders enriched themselves through “unjustified and oversized awards” of the company’s stock.

The stockholder plaintiffs, Alpha Venture Capital Partners LP, Caracciolo Family Trust, Gregory Gould, Law Offices of Kenneth E. Chyten Defined Benefit Pension Plan, Gavin Myers, and Martin Peterson, say they want to hold the company’s directors accountable for awarding themselves and others about 21 million shares of company common stock without following procedures.

The equity awards were “patently unfair and excessive,” ...

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