Avid Bioservices Inc (CDMO)

[Bungler]

The CA is about reputation and a large amount of $$$$$$$

I have been hearing that "no news till CA is over" for some time. It does not make sense. The CA is about the company knowingly putting out information that it knew was false, to induce persons to buy the stock. That is all. If there was no intent and no actual knowledge, the cause of action fails.

Subsequent good news showing that the biologic actually does work as believed only supports and confirms that the original PR was released in good faith. Good news does nothing to help prove the CA plaintiff's allegations that the company knew the biologic does not work yet put out a false PR reporting stellar results. To the contrary, it would be BAD news that would tend to support the CA allegation.

In any event regardless of the existence of the CA, the company is required to report material developments as mandated by SEC Regulations.