Cytodyn Inc (CYDY)

[HyGro]

SEC has high likelihood of action. They don't start a formal investigation until they have solid evidence of a violation. SEC does civil suits that have a lower bar to prove wrongdoing. DOJ saw SEC's evidence and decided that there was a potential criminal case -- a higher bar of proof.

First subject was the CYDY's CoV indication and then they both expanded their investigation to cover HIV (likely NPs BLA filing), mTNBC and the company's "investor relations" vendors. If DOJ didn't think there was a case, they would end the investigation, but they just expanded it.

FDA's CoV Statement was likely the initiator of the SEC and DOJ's investigation to start as FDA stated CYDY misrepresented and manipulated their CoV data which sounds like stock fraud.