Immune Therapeutics’ Securities Claims Against Statera CEO Advance

Immune Therapeutics Inc., a founding shareholder of Cytocom Inc., can pursue securities fraud claims against Cytocom’s former CEO who allegedly misrepresented the amount of shares Immune would receive in a merger he had pursued.

Cytocom merged with Cleveland Biolabs Inc. in 2021, creating Statera BioPharma Inc. Michael Handley—the Cytocom CEO who pursued the deal and later became Statera CEO—said Cytocom shareholders would receive a controlling stake in Statera, according to Immune.

Immune adequately alleged that, despite those representations, Handley was aware that Immune and other Cytocom shareholders would receive less than 50% interest in the new entity, Judge ...