CytoDyn Board Reaches Rescission Deal to End Executive Comp Case

Current and former CytoDyn Inc. board members and executives reached a proposed settlement Thursday of a lawsuit in Delaware Chancery Court claiming they enriched themselves at the expense of public investors through “unjustified and oversized awards” of stock and options.

The agreement, which requires the approval of Vice Chancellor Paul A. Fioravanti Jr., would rescind about 5.4 million of the 9.3 million shares and options CytoDyn’s leaders gave themselves in December 2019, according to the court filing disclosing the deal.

CEO-chairman Nader Z. Pourhassan would keep nearly 1.7 million shares and options, out of 4 million, while several others would ...