As an addendum to what HouseofCards wrote about opt-outs and division of the payout, I am posting below what one of the attorneys wrote me after I contacted them. Hopefully this will save others from having to research this.
I think the above answers the questions being asked most often.
Q: Will it damage CytoDyn if you participate in the settlement?
A: No, the settlement amount is fixed no matter how many valid claims are received.
Q: Does a stockholder have to opt in to participate?
A: No.
Q: If a stockholder bought during the class period but has not sold, can they be a member of the class?
A: Yes
Some posters seem concerned that they may miss the opportunity to participate. I believe it is safe to say that when notices start going out, it will be extensively discussed on this board.
Quote:Right now, we are working on the settlement documents. Once the settlement documents have been negotiated/finalized, we will file a motion with the Court requesting preliminary approval of the settlement. Once we receive preliminary approval of the settlement, we will then undertake a notice campaign to class members.
Class members will not need to opt into the settlement. If you are a class member, you will automatically be in the class and potentially eligible to receive a payment from the settlement. In order to receive a payment, a class member will need to submit a claim form and the supporting documentation requested in the claim form to show their holdings/transactions in CytoDyn common stock during the relevant period. The claim form will be available once we receive preliminary approval of the settlement and notice has gone out to the class. When the time comes, class members will be able to complete a claim form and mail it to the administrator for processing, or they can submit a claim form online.
If you purchased your shares during the class period and still hold those shares, you would be a class member (as long as you were damaged). The settlement will result in a set amount of cash and shares; that amount will not change depending on how many people participate. The settlement amount is the settlement amount and it will be allocated pro rata among the class members that submit valid claim forms.
At the outset of the notice campaign, the administrator will send notice of the settlement to banks, brokers and other nominees (like Fidelity and Schwab). Brokers and nominees will have the option of providing the administrator with the names/addresses of their clients who may be class members (and the administrator will send notice to these individuals) or the brokers and nominees can choose to provide notice of the settlement to their clients directly.
Any class member who wishes to be eligible to receive a payment from the settlement will need to submit a completed claim form.
I think the above answers the questions being asked most often.
Q: Will it damage CytoDyn if you participate in the settlement?
A: No, the settlement amount is fixed no matter how many valid claims are received.
Q: Does a stockholder have to opt in to participate?
A: No.
Q: If a stockholder bought during the class period but has not sold, can they be a member of the class?
A: Yes
Some posters seem concerned that they may miss the opportunity to participate. I believe it is safe to say that when notices start going out, it will be extensively discussed on this board.
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