The CytoDyn Inc (OTCMKTS:CYDY) stock was back in focus yesterday after the Board of Directors at the company sent out a key statement. The statement was in relation to the court order delivered yesterday a District Court Judge about the lawsuit that had been filed by CytoDyn against an activist investor group headed by Bruce Patterson and Paul Rosenbaum.
However, the statement from the Board of Directors did not have the desired effect on the investors as the CytoDyn stock tanked by as much as 13%. The court order was specifically related to the email solicitations from the activist group that had actually not been filed with the United States Securities and Exchange Commission.
The court order noted that the email solicitation constituted solicitation under the Securities and Exchange Act from 1934. The judge went on to state that the activist group must comply with the rules that have been laid down by the SEC and also the federal securities laws.
While the order might seem like a point in favour of CytoDyn in this battle against the activist investors group, investors do not seem to have seen it in the same lift. It remains to be seen if the stock can actually make a recovery today.