Wonder why no enrollment in trials while Pestell was around??
Another feather in cap of the nodderettes--months of salary and shares wasted
CytoDyn settles defamation suit with former chief medical officer
By Elizabeth Hayes – Staff Reporter, Portland Business Journal
May 25, 2022
CytoDyn Inc. (OTCQB: CYDY) has settled a defamation and breach-of-contract lawsuit brought by its former chief medical office, Dr. Richard Pestell, the Vancouver-based biotech company announced this week.
Under the non-cash settlement, the parties will release one another of all claims, the announcement said. The company is also giving Pestell 8.3 million shares of CytoDyn’s common stock held in escrow. And it will transfer to him the assets acquired from his company ProstaGene LLC and subsequently written off by CytoDyn.
Finally, Cytodyn will issue a warrant at an exercise price of 37 cents per share to Pestell for 7 million shares of common stock.
The announcement said Cytodyn and Pestell are exploring ways in which he can help the company’s drug candidate realize its full potential in oncology and that it regrets Pestell's departure and subsequent public statements made by former CEO Nader Pourhassan.
“We are pleased to resolve this matter as part of our comprehensive efforts to restore credibility with the medical and scientific communities,” CFO and interim President Antonio Migliarese said in a written statement. “We look forward to the opportunity to utilize Dr. Pestell’s expertise to further the development of leronlimab.”
CytoDyn has tried unsuccessfully for many years to gain approval for leronlimab as a treatment for HIV, as well as various forms of cancer and even Covid-19. Under Pourhassan, the company also did battle not only with Pestell but also some shareholders and board members. It is also awaiting the results of investigations by the Securities and Exchange Commission and Department of Justice.
Pestell, who was fired from CytoDyn, said in his lawsuit, filed in 2019, that Pourhassan withheld funding and support for key programs, excluded him from key decisions and supplanted his role by hiring a chief science officer. He alleged Pourhassan “embarked on an effort to retaliate” against him after he raised safety concerns related to a drug application.
Pestell was also the largest shareholder in an activist group that tried to remake CytoDyn’s board last year but fell short. Pourhassan was later ousted as CEO.
Cytodyn's stock was trading at 32 cents a share on Wednesday.
