- Nader Pourhassan, the former CEO of embattled biotech CytoDyn ( OTCQB:CYDY ), has been indicted by a federal court grand jury and accused of conspiracy to defraud investors in regards to the company's HIV candidate leronlimab.
- The stock is down ~12% in Tuesday afternoon trading.
- Pouhassan and Kazem Kazempou, CEO of a private company that ran CytoDyn's ( OTCQB:CYDY ) trials, are accused of misleading investors about the timeline and status of leronlimab regulatory submissions to the US FDA in an effort to to artificially boost the price of the company's stock.
- The indictment further alleges that in in April 2020, after CytoDyn ( OTCQB:CYDY ) missed timelines, Pourhassan told Kazempour to submit the Biologics License Application, even if it was not complete, so that Pourhassan and CytoDyn ( OTCQB:CYDY ) could tell investors that the BLA was submitted.
- Pourhassan was terminated as CEO in January 2022 .
- In October, CytoDyn ( OTCQB:CYDY ) said it was withdrawing the leronlimab BLA .
For further details see:
Former Cytodyn CEO Pourhassan charged with defrauding investors