San Diego, CA -- (SBWIRE) -- 05/06/2014 -- An investor, who purchased shares of CytRx Corporation (NASDAQ:CYTR), filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by CytRx in connection with certain allegedly false and misleading statements made between November 22, 2013 and March 13, 2014
Investors who purchased shares of CytRx Corporation (NASDAQ:CYTR) have certain options and for certain investors are short and strict deadlines running. Deadline: May 13 2014. NASDAQ:CYTR investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of CytRx Corporation (NASDAQ:CYTR) November 22, 2013 and March 13, 2014 including purchasers in the Company's public offering completed on February 5, 2014,, that CytRx and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that CytRx Corporation, its CEO, and two stock promotion firms made misleading statements and failed to disclose that numerous articles touting CytRx Corporation stock issued by the stock promotion firms were paid stock promotions and when the market began to learn of the true facts through partial disclosures, the value of CytRx stock dropped damaging investors.
CytRx Corporation reported that its annual Total Revenue increased from $0.10 million in 2012 to $0.30 million in 2013 while its respective Net Loss increased from $17.96 million to $47.49 million. Shares of CytRx Corporation (NASDAQ:CYTR) grew from $2.10 per share in November 2013 to as high as $8.08 per share on Janaury 10, 2014, respectively $7.98 per share on January 30, 2014.
Then on March 13, 2013 an article was published that alleged CytRx Corporation hired The DreamTeam Group to tout its stock. According to the allegations DreamTeam Group itself then published a variety of articles, many if not all of which misleadingly omitted to disclose that DreamTeam Group was paid by CytRx Corporation to promote it and that several of the articles were also falsely attributed to various third parties. Shares of CytRx Corporation declined to $3.61 per share on March 14, 2014 and continued to decrease to as low as $2.92 per share on April 15, 2014.
On May 2, 2014, NASDAQ:CYTR shares closed at $3.22 per share.
Those who purchased shares of CytRx Corporation (NASDAQ:CYTR) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego