Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether CytRx Corporation (“CYTR” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Central District of California by another law firm on behalf of purchasers of the common stock of CytRx Corporation (NASDAQ: CYTR) between November 22, 2013 and March 13, 2014, inclusive (the “Class Period”).
Throughout the Class Period, the Company was paying The DreamTeamGroup and MissionIR to promote CYTR by publishing articles on various social media outlets, including Seeking Alpha and Forbes, without disclosing the Company’s involvement to investors. These articles boosted the price of CYTR shares while the Company issued $86 million in new equity.
The complaint alleges that CYTR and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that numerous articles issued by the stock promotion firms were paid stock promotions.The case was brought following an article published on Seeking Alpha entitled Behind the Scenes with DreamTeam, CytRx and Galena, which disclosed that the Company had hired and worked directly with The DreamTeamGroup and MissionIR to promote the Company’s stock. The price of CYTR’s shares fell over 12% from $4.78 to $4.17 in response. Cohen Milstein encourages all investors who purchased CYTR common stock between November 22, 2013 and March 13, 2014, or former employees with information concerning this matter to contact the firm. If you are a CYTR shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than May 13, 2014 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member. Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach Gardens, and is active in major litigation pending in federal and state courts throughout the nation.