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Why did the judge let NSF out of the lawsuit in the first place?
Because virtually all of the malfeasance by Amarex effecting Cytodyn occurred before the merger with NSF and, I suspect, was not disclosed to NSF before the merger.
Do you have another explanation?

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The answer is because all parties, INCLUDING CYTODYN, asked the Court to let NSF out of the INJUNCTION lawsuit.
Presumably, NSF was not necessary with regard to the INJUNCTION lawsuit's Injunction that had ALREADY BEEN GRANTED IN CYTODYN's FAVOR.