Sue your vendor, Go to Jail?
Dumbest legal strategy of 2022?
Last year, CytoDyn sued the company that managed their clinical trials, Amarex Clinical Research. for breach of contract.
CytoDyn and its CEO touted an "experimental treatment for HIV that could become a lucrative medicine for Covid-19." There was just one little problem: The treatment didn't work, couldn't work, and both CytoDyn's CEO, Nader Pourhassan, and Amarex's CEO, Kazem Kazempour, apparently knew it.
No problem! According to federal prosecutors in Maryland, the two CEOs simply "repeatedly lied about the development and regulatory status of the company’s drug, inflating [Cytodyn's] stock price and then selling shares at a profit."
Now, for the really dumb part: In the course of their breach of contract lawsuit, the companies introduced evidence that brought to light many of the CEO's alleged crimes. Pourhassan now faces federal charges of defrauding CytoDyn’s shareholders and personally profiting by selling shares of his company’s stock. Federal prosecutors are relying on many of the documents introduced in the breach of contract case to prove their criminal case.
These blogs are an outgrowth of Cambyses Financial Advisor’s Biotechnology Initiative. Articles are not an endorsement of any product or producer we mention in the article. They are not an offer to buy or sell any security. Investments in Biotechnology sector companies are risky and speculative. Consult your financial advisor for more information about the companies we mention. Neither Cambyses nor any of our clients hold positions in the firms named in this blog-note.