San Diego, CA -- (SBWIRE) -- 07/15/2014 -- An investigation on behalf of current long-term investors in shares of CytRx Corporation (NASDAQ:CYTR) concerning potential breaches of fiduciary duties by certain directors and officers of CytRx) was announced.
Investors who are current long term investors in CytRx Corporation (NASDAQ:CYTR) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NASDAQ:CYTR stocks follows a lawsuit filed recently against CytRx Corporation over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:CYTR stocks concerns whether certain CytRx officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Central District of California the plaintiff alleges that CytRx 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.
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 (NASDAQ:CYTR) closed on July 11, 2014, at $3.60 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