Former CytoDyn Executives Convicted of Massive Securities Fraud and Misleading Investors

In a significant legal outcome, a jury convicted former CytoDyn executives Nader Pourhassan and Kazem Kazempour on charges of defrauding investors through systematic securities and wire fraud. Between 2018 and 2021, Pourhassan, the previous CEO of CytoDyn, along with Kazempour, the CEO of Amarex Clinical Research, fabricated the progress and regulatory standing of the investigational drug leronlimab to deceive investors and maintain an artificially inflated stock value. These misleading statements led CytoDyn to raise over $300 million, from which the two executives generated personal gains—Pourhassan with $4.4 million and Kazempour with $340,000[1][2]. Pourhassan was convicted on nine counts, including securities and wire fraud, while Kazempour faced convictions for securities and wire fraud, with both awaiting sentencing and potentially facing up to 20 years in prison per count[2].