These hedge funds sued Cel-Sci in October 2009 asking for $30 million in actual damages, $90 million in punitive damages and reduction in the conversion price of the Cel-Sci convertible notes and warrants they purchased in 2006.

Cel-Sci ended the first quarter with $17.7 million in cash. In its first-quarter regulatory filing, Cel-Sci warned that additional cash or long-term financing will be required for the company to continue funding its Multikine clinical trial and possibly seek regulatory approval. The company is still in the beginning stages of a phase III study of Multikine that could take years to complete.

Cel-Sci shares closed Monday at 68 cents.

--Written by Adam Feuerstein in Boston.

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Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

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