CytoDyn Investors Challenge Director Removal Rule In Del.

By Jeff Montgomery (September 23, 2021, 5:16 PM EDT) -- Two stockholders in late-stage biotech venture CytoDyn Inc. sued the company in Delaware Chancery Court late Wednesday in a challenge to the company's "for cause only" restriction on director removals, the latest in a run of bitter litigation over company control.

The suit noted that the provision violates Delaware's general corporation law, and it joins a recent spate of suits contesting alleged company attempts to snuff dissident stockholder objections to director compensation, board nominating requirements and overall management.

Shareholders Robert Schielke and Lois J. Schielke said in their suit that, for CytoDyn and companies like it, "no exception applies to the...

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