Readers may recall that back at the end of April 2020, we discussed a number of lawsuits filed by former insiders against everyone’s favorite reverse-merger pink sheet Coronacrapper, Cytodyn (CYDY), and its klown krew of kreme de la kreme managers including The NaDDir* and Dr. Scott Kelly. Missed it? Catch up here.
You will find no mention in yesterday’s bizarre Cytodyn press release touting the utterly INsignificant “safety” results from the Phase 2 trial of wonder drug leronlimab in mild-to-moderate Covid patients, of any developments in the Delware case Alpha Venture Capital Partners LP v. Nader Z. Pourhassan (2020-0307-PAF). Nor will you find any mention of legal developments in The NaDDir’s bizarre rant on a paid stock pumping video put out on Youtube yesterday. Nor will you find any 8k filings from the company about developments in that case.
But there have been developments in the case, bad developments. Developments that Cytodyn likely does not want their retail shareholder base to learn about before the vote on authorizing 100mm more shares today, the 22nd of July.
Back in early May, the company formed a Special Litigation Committee of the Board to conduct an internal investigation of the allegations in the lawsuit. Has The NaDDir mentioned this on any of his many stock touting webcasts and conference calls?
On July 21st the court released a letter, dated July 20th, detailing recent unusual actions by Chairman and CMO Dr. Scott Kelly.
According to the letter:
Mr. Kelly directly contacted Tony Caracciolo, the representative of Plaintiff Caracciolo Family Trust, to discuss this case. Without my knowledge, Mr. Kelly and Mr. Caracciolo had two conversations by telephone on July 17, 2020, and July 18, 2020. Despite Mr. Kelly’s text message to Mr. Caracciolo stating that Mr. Kelly “received permission from the attorneys” to reach out to Mr. Caracciolo directly, Plaintiffs’ counsel did not receive any notice of Mr. Kelly’s intent to do so.
And what did Kelly want to discuss?
Kelly attempted to threaten and intimidate Mr. Caracciolo and the other Plaintiffs into dropping their derivative claims. Specifically, Mr. Kelly claimed that this lawsuit is an impediment to the Company’s attempt to up-list to NASDAQ, essentially arguing that an asset of the Company (this derivative action) is preventing CytoDyn from being up-listed to NASDAQ. He further stated that if the lawsuit is not “dropped,” and the Company is unable to up-list, the Company will publicly “blame” Plaintiffs and “will sue” Plaintiffs for bringing this lawsuit. In other words, in a misguided attempt to circumvent counsel, the SLC, and this Court, Mr. Kelly threatened Mr. Caracciolo with a public smear campaign and a potential lawsuit unless Plaintiffs dropped their derivative claims.
For anyone who needs the obvious pointed out to them (aka anyone long this piece of reverse-merger trash) here is the important part:
“Specifically, Mr. Kelly claimed that this lawsuit is an impediment to the Company’s attempt to up-list to NASDAQ, essentially arguing that an asset of the Company (this derivative action) is preventing CytoDyn from being up-listed to NASDAQ.”
Yet The NaDDir* and Kelly have repeatedly reassured investors on recent webcasts and calls that CYDY qualified for a NASDAQ listing, and it was just a matter of paperwork. Clearly, they don’t. Is anyone here at BuyersStrike! HQ surprised? Hardly.
Want to read a copy of the letter? You can find it on the docket, here. No access? OK, just this once, here you go, the July 20 Letter.
*Spelled thusly for a double dose of that sweet sweet stock pimping.