CytoDyn Board Beats Back Activist Suit Over Proxy Fight Deadline

CytoDyn Inc.'s board didn’t breach the pharmaceutical company’s bylaws or act unfairly when it waited until a month after the nominating deadline to reject a dissident director slate, a Delaware judge ruled, saying a group of activist investors played “fast and loose” with the submission.

Vice Chancellor Joseph R. Slights III ruled for the board in a post-trial opinion Wednesday for Delaware’s Chancery Court, rejecting claims that the sitting directors manipulated the proxy process by waiting to “ambush” investors who had initially hit the deadline.

“By playing fast and loose in their responses to key inquiries,” then “submitting their nomination ...