CytoDyn Must Defend Investor Suit Over HIV, Covid Drug Rebuff

CytoDyn Inc. must defend against claims that the company and former executives misled investors about the progress of getting regulatory approval for use of its sole therapy to treat HIV and Covid-19, a federal judge ruled.

Investors adequately alleged the biotechnology company knowingly misrepresented the status of its biologic license application to treat HIV and its efforts to apply for emergency use against Covid-19 during the pandemic, Judge Benjamin H. Settle said Wednesday.

CytoDyn and two former executives—also joined by former CEO Nader Z. Pourhassan, who was criminally convicted last year for securities fraud—failed to convince the US District Court ...