Ex-CytoDyn CEO Prisoned: Ordered to Pay $5.3M Compensation as Court Hands Down Sentence

Ex-CytoDyn CEO Prisoned

CytoDyn is one of the biotech companies you might have heard about if you follow news about medicine and money. Nader Pourhassan is the Ex-CytoDyn CEO. Nader Pourhassan was sentenced to prison for tricking investors and lying to the public about a drug.

Nader Pourhassan served as the President and CEO of CytoDyn for a decade. The company was working on a drug termed Leronlimab. They developed this drug to treat serious diseases like HIV and even COVID-19.

However, the court found that he was not honest about the manufacturing and working process of the drug. He exaggerated the drug’s progress to make the company seem more successful than it actually was. He also misled people about the status of their FDA applications. 

The stock price increased as he made the company appear successful. The Department of Justice (DOJ) said that he sold millions of his own shares in the company after spreading this false information. He claimed about $4.4 million for himself at the end. 

The law finally caught up with him. In January 2022, the CytoDyn board of directors fired him due to the issue. He was convicted of fraud by the end of 2024. On 26 January 2026, the final decision was made. 

The Ex-CytoDyn CEO was imprisoned for 30 months. This is 2.5 years behind bars. And the court wants the money back.  

Pourhassan has been ordered to pay a penalty of more than $4.4 million. On top of that, he has to pay $5.3 million in restitution. 

U.S. Attorney Kelly Hayes said that Pourhassan “exploited a deadly public health crisis” just to get rich. She made it clear that those who choose greed over honesty will be answerable one day. 

Another man involved in the case is getting a second chance, while Pourhassan is heading to prison. Kazem Kazempour was the CEO of Amerex. He helped Pourhassan manage the clinical trials for CytoDyn’s drug. He was found guilty of fraud in December 2024. 

However, his lawyers argued that the trial wasn’t fair to him. They said that all the evidence against Pourhassan made Kazempour look guilty by association. 

The judge actually agreed with his defence. She realised that lumping both men together in one trial made things messy and confused the jury. It basically made Kazempour look guilty just because he was sitting next to Pourhassan. Because of that unfairness, the judge wiped the slate clean. Kazempour now gets a fresh start with a brand-new trial, just for him.

But don’t think this story is over yet. Even with prison time booked for the ex-CEO, the legal headaches continue. Both men are still dealing with a separate lawsuit where people are suing them for money. For now, though, the court has made one thing very clear: if you lie to investors to make yourself rich, you will eventually pay the price.