Colorado Pharma Co. investor sues for stock split and subsidy

By Jeff Montgomery (March 4, 2022, 4:09 PM EST) – Biopharmaceutical company Aytu Biopharma Inc. has been the subject of a spin-off shareholder lawsuit accusing its CEO and four directors of wrongfully attributing more than $10 million in stock while ignoring new limits on incentive awards resulting from a stock split.

Shareholder Paul John M. Paguia filed the suit on behalf of the Colorado-based company and its investors on Thursday, alleging chief executive Gary Cantrell and four directors handed themselves 9% of the company without approval. appropriate board or shareholder disclosure.

The allegations were significant enough, according to Paguia’s lawsuit, to cause the resignations in May 2021 of two…

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