Former CytoDyn CEO Sentenced to Prison

A federal judge has sentenced former CytoDyn chief executive Nader Pourhassan to 30 months in prison for misleading investors about the development of an experimental drug for HIV and Covid-19 and selling his personal shares at artificially inflated prices.

Between 2018 and 2021, Pourhassan intentionally misled investors about the drug’s prospects for FDA approval to artificially inflate the price of CytoDyn’s stock and attract new investors. He was ordered to pay more than $5.3 million in restitution and to forfeit over $4.4 million in proceeds from the scheme, according to the U.S. Department of Justice.

The case was investigated by the FBI, FDA’s Office of Criminal Investigations, and the U.S. Postal Inspection Service. “Today’s announcement should serve as a reminder that fraud related to medical products will not be tolerated,” FDA Special Agent in Charge Robert Iwanicki is quoted in a release as saying.