The U.S. Department of Justice announced that Nader Pourhassan, former Chief Executive Officer of CytoDyn, was sentenced to 30 months in prison for misleading investors about the development of an investigational drug and then selling his personal holdings at artificially inflated prices. Court documents and trial evidence showed that, between 2018 and 2021, Pourhassan intentionally misled investors about the drug’s prospects for U.S. Food and Drug Administration approval to inflate CytoDyn’s stock price and attract new investors. He then sold 4.8 million shares following false announcements, generating USD 4.4 million in proceeds. Pourhassan was convicted in December 2024 of four counts of securities fraud, two counts of wire fraud, and three counts of insider trading; the court also ordered more than USD 5.3 million in restitution and more than USD 4.4 million in forfeiture. The case was investigated by the Federal Bureau of Investigation, the Food and Drug Administration’s Office of Criminal Investigations, and the U.S. Postal Inspection Service, and prosecuted by the Department of Justice’s Criminal Division Fraud Section and the U.S. Attorney’s Office for the District of Maryland.

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