Although the CytoDyn Inc (OTCMKTS:CYDY) stock has been in the middle of a downward spiral in the past week and has declined by as much as 14% during the period, there was a significant development last week that investors ought to look into.
Back on October 14 it emerged that the company’s lawyers Sidley had managed to get a major win for CytoDyn in a closely followed activist investor case at the Delaware Court of Chancery. It goes without saying that such a development is a positive for CytoDyn’s management but it seems that actual investors were not particularly happy about the turn of events.
The company and its board of directors have been represented by Sidley in this particular case since as far back as July 2021. The case had originated after a group of shareholders of CytoDyn announced their intention to have a proxy contest to replace the board of directors of the company at the next annual general meeting.
Back in July, CytoDyn had rejected the application and stated that although it was received prior to the deadline, it failed to satisfy some of the bylaws. It now remains to be seen if the CytoDyn stock can rebound.
