CytoDyn Announces Resolution of Class Action Lawsuit

CytoDyn (OTCQB: CYDY) announced it reached an agreement in principle to resolve the securities class action filed in March 2021, with the parties agreeing to a settlement on November 23, 2025.

Rhea-AI Summary

CytoDyn (OTCQB: CYDY) announced it reached an agreement in principle to resolve the securities class action filed in March 2021, with the parties agreeing to a settlement on November 23, 2025. The matter remains pending final court approval in the United States District Court for the Western District of Washington and additional details are included in the company’s Form 8-K filed with the SEC on December 1, 2025.

Management said the settlement provides clarity for stockholders and partners and allows the company to focus on advancing Phase II studies in metastatic colorectal cancer and metastatic triple-negative breast cancer and progress in its Expanded Access Program.

Positive

• Agreement in principle to resolve class action on Nov 23, 2025
• Company intends to refocus on clinical programs including Phase II mCRC and mTNBC
• Management states settlement provides clarity and finality for stakeholders

Negative

• Settlement is subject to final court approval, leaving outcome uncertain
• Class action has been pending since March 2021, indicating prolonged litigation

Argus Dec 1 session

+0.52% close to close Open Argus

Details

News Market Reaction – CYDY

On Dec 1, the day this news came out, CYDY closed 0.52% above the previous close.

Data tracked by StockTitan Argus for the Dec 1 session.

Key Figures

Cash settlement amount: $500,000 Settlement shares: 49 million shares Equity commitment size: $30.0 million +5 more

Cash settlement amount

$500,000

Cash component in securities class action settlement proposal

Settlement shares

49 million shares

Common stock to be issued to plaintiff class if settlement completed

Equity commitment size

$30.0 million

Maximum aggregate gross proceeds under Yorkville agreement / S-3

Shares registered for resale

120,000,000 shares

Preliminary S-3 prospectus for YA II PN, Ltd. resale

Advance share pricing

98% of lowest daily VWAP

Pricing formula over three-trading-day period after Advance Notice

Shares outstanding

1,262,563,778 shares

Common shares outstanding as of October 31, 2025

Pro forma shares

1,382,563,778 shares

If all 120,000,000 S-3 shares were issued

Current share price

$0.32724

CYDY price prior to this announcement

Historical Context

5 past events · Latest: Dec 08

5 events

1. Dec 08

   Clinical data update

   24h Move

   +3.0%

   Poster on PD-L1 upregulation and survival in mTNBC with leronlimab.

2. Dec 01

   Legal settlement deal

   24h Move

   +0.5%

   Agreement in principle to resolve securities class action, pending approval.

3. Nov 24

   Clinical data preview

   24h Move

   +9.6%

   Planned SABCS poster on prolonged survival in TNBC using leronlimab.

4. Nov 03

   Equity funding pact

   24h Move

   +11.3%

   Announcement of $30 million funding commitment from Yorkville Advisors.

5. Oct 09

   Investor conference

   24h Move

   -2.3%

   LD Micro investor presentation announcement with small negative price move.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

monoclonal antibody, CCR5 receptor, metastatic triple-negative breast cancer, metastatic colorectal cancer, +3 more

7 terms

monoclonal antibody medical

"a first-in-class humanized monoclonal antibody targeting the CCR5 receptor"

A monoclonal antibody is a laboratory-made protein designed to recognize and attach to a specific target in the body, such as a disease-causing substance or cell. It functions like a highly precise lock-and-key tool, helping to treat or detect illnesses. For investors, companies developing monoclonal antibodies can represent promising opportunities in the healthcare sector, especially as these treatments often address unmet medical needs.

CCR5 receptor medical

"monoclonal antibody targeting the CCR5 receptor with therapeutic potential"

CCR5 receptor is a protein on the surface of certain immune cells that acts like a doorway guiding cell movement and sometimes allowing pathogens to enter. It matters to investors because drugs or therapies that block, modify, or use this doorway can treat diseases (for example, some viral infections and immune conditions), and progress in research, regulatory approvals, patents, or trial results can significantly affect a company’s valuation and future revenue prospects.

metastatic triple-negative breast cancer medical

"including metastatic triple-negative breast cancer (mTNBC) and colorectal cancer"

A form of breast cancer that has spread beyond its original site to other parts of the body and lacks the three common biological targets used by many standard therapies (hormone receptors and HER2). Because it has no easy “locks” for existing targeted drugs, it is harder to treat and often relies on chemotherapy or newer experimental approaches; this matters to investors because it shapes demand for novel therapies, trial success risks, pricing potential, and long‑term revenue prospects in oncology.

metastatic colorectal cancer medical

"including metastatic triple-negative breast cancer (mTNBC) and colorectal cancer (mCRC)"

Metastatic colorectal cancer is cancer that started in the colon or rectum and has spread to other parts of the body, most often the liver or lungs, making it harder to treat. For investors, it matters because advanced disease drives demand for more intensive treatments, ongoing clinical trials, and long-term care costs; think of it like a fire that has jumped from one room to multiple rooms, requiring bigger, more expensive responses and creating larger market opportunities and regulatory scrutiny.

securities class action regulatory

"resolve the previously disclosed securities class action lawsuit that was initially filed"

A securities class action is a lawsuit brought by a group of investors who claim they lost money because a company or its executives made false or misleading statements about financial performance, risks, or business prospects. Think of it as many people pooling forces to challenge misleading information; it matters to investors because these cases can lead to large settlements or judgments, hurt a company’s reputation, drain cash, and cause share prices to fall or become more volatile.

form 8-k regulatory

"included in the Company’s current report on Form 8-K filed with the SEC"

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

expanded access program medical

"the progress with our Expanded Access Program, we are more optimistic than ever"

A program that allows patients with serious or life‑threatening conditions to receive an experimental drug or therapy before it is fully approved by regulators, when they cannot join clinical trials. Investors care because expanded access can change a treatment’s market perception, create early real‑world safety or demand signals, and affect regulatory timelines and potential revenue — like a pre‑order system that also reveals how the product performs outside controlled testing.

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VANCOUVER, Washington, Dec. 01, 2025 (GLOBE NEWSWIRE) -- CytoDyn Inc. (OTCQB: CYDY) ("CytoDyn" or the "Company"), a clinical-stage oncology company advancing leronlimab, a first-in-class humanized monoclonal antibody targeting the CCR5 receptor with therapeutic potential across multiple indications, including metastatic triple-negative breast cancer (mTNBC) and colorectal cancer (mCRC), today announced that it has reached an agreement in principle to resolve the previously disclosed securities class action lawsuit that was initially filed in March 2021 against the Company and certain former officers. The case is pending in the United States District Court for the Western District of Washington and is titled Courter et al. v. CytoDyn Inc. et al.

The parties reached an agreement in principle to resolve the matter on November 23, 2025. The agreement is subject to final court approval. Additional information is included in the Company’s current report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on December 1, 2025, and will also be disclosed in subsequent reports filed with the SEC.

“The settlement provides meaningful clarity and finality for this matter and is beneficial to all of our Company’s stakeholders, including our stockholders and prospective pharma partners”, said Tyler Blok, Chief Legal Officer at CytoDyn. “Subject to final court approval of the settlement, this matter will be closed. We are focused on moving forward with our clinical development programs.”

Jacob Lalezari, M.D., CEO of CytoDyn, added, “Bringing closure to this matter has been a priority since I was hired as CEO. The stockholders deserve this finality, and we are pleased to achieve a resolution that reinforces our stability and allows us to pursue our mission. It comes at an especially exciting moment for the company, as a growing body of clinical evidence continues to validate the scientific promise of leronlimab. With new Phase II studies moving forward in metastatic colorectal cancer and metastatic triple-negative breast cancer, and the progress with our Expanded Access Program, we are more optimistic than ever about leronlimab’s potential to benefit cancer patients who struggle today with limited treatment options.”

About CytoDyn

CytoDyn is a clinical-stage oncology company dedicated to advancing leronlimab, a first-in-class humanized monoclonal antibody that targets the CCR5 receptor, a key regulator of immune function implicated in cancer, infectious diseases, and autoimmune disorders. By unlocking a well-validated mechanism of action with broad therapeutic potential, CytoDyn is developing a versatile platform designed to address serious unmet medical needs and serve multiple high-value markets. Guided by a mission to improve patients’ quality of life through therapeutic innovation, CytoDyn is committed to integrity, responsibility, and service as it works to bring transformative treatments to patients worldwide.

For more information, please visit www.cytodyn.com and follow us on LinkedIn.

Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements relating to, among other things, final court approval of the class action settlement, mechanism of action of leronlimab, clinical trial results, product development, market position, future operating and financial performance, and business strategy. The reader is cautioned not to rely on these statements, which are based on current expectations of future events. For important information about these statements and our Company, including the risks, uncertainties and other factors that could cause actual results to vary materially from the assumptions, expectations and projections expressed in any forward-looking statements, the reader should review our Annual Report on Form 10-K for the fiscal year ended May 31, 2025, including the section captioned “Forward-Looking Statements” and in Item 1A, as well as subsequent reports filed with the Securities and Exchange Commission. CytoDyn Inc. does not undertake to update any forward-looking statement as a result of new information or future events or developments except as required by applicable law.

Corporate Contact

CytoDyn Inc.
ir@cytodyn.com

Media Contacts

David Schull or Ignacio Guerrero-Ros, Ph.D.
Russo Partners, LLC
CytoDyn@russopartnersllc.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did CytoDyn (CYDY) announce on December 1, 2025 about the class action?

CytoDyn announced an agreement in principle to resolve the securities class action, reached on November 23, 2025, subject to final court approval.

Is the CytoDyn (CYDY) settlement final and effective now?

No; the agreement is subject to final court approval and the case remains pending in the Western District of Washington.

How does the CytoDyn (CYDY) settlement affect its clinical programs?

Management said the settlement provides clarity so the company can focus on advancing Phase II studies in mCRC and mTNBC and its Expanded Access Program.

When was the securities class action against CytoDyn (CYDY) originally filed?

The class action was initially filed in March 2021.

Where can investors find more details about CytoDyn's (CYDY) settlement announcement?

Additional information is disclosed in the company’s Form 8-K filed with the SEC on December 1, 2025 and in subsequent SEC filings.