Cytodyn Inc (CYDY)

[Scooter McCabe]

Venture Capital Lawsuit Busted.

In reference to an early post a motion for counsel to withdraw from Cytodyn, listed as a "nominal defendant," was granted.

A number of posters have pointed to this lawsuit as some sort of massive company sinking iceberg up until today.

Up until today Cytodyn was not simply identified as a "nominal defendant."

Why is this important?

Nominal Defendant:

a defendant or a plaintiff included in a lawsuit because of a technical connection with the matter in dispute, and necessary for the court to decide all issues and make a proper judgment, but with no responsibility, no fault and no right to recovery. Example: suing an escrow holder or trustee who is holding a title to real property or deposited funds but has no interest in the property, funds or the lawsuit. Thus the court can order the nominal defendant to transfer title or pay out the funds when the rights of the real parties are decided.

Source: https://dictionary.law.com/Default.aspx?selected=1333

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Nader could get nuked, refried, cooked and microwaved legally and still nothing would happen to CYDY. It means the profits the company makes after approval are SAFE!

Nader would be on the hook if anything happened, but that is him and his assets, not the company. With this insight this leads to an important new point of anaylsis.

Nader's sale of stock is being used to cover legal costs for his own defense.

Billable hours are no joke. If Nader feels like he can win his case he will spend every dollar to do just that. Keep in mind this is the guy that fought the US Government with it's infinite resources and won. So he is going to use his sold shares to pay for his legal battle.

Without Justdafacts helpful clarification this would never have come to light. We owe Justdafacts some gratitude for providing the screenshots to clear up the myth.

The take away is the company is safe, Nader isn't just pocketing money, and the lawsuits aren't going to render judgments forcing us to pay anyone anything.