Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Cellceutix Corporation
Oklahoma City, OK (September 15, 2015) – On September 11, 2015, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against Cellceutix Corporation (OTC: CTIX). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is May 10, 2013 through August 6, 2015. More specifically, this litigation was filed because Defendants failed to disclose that Brilacidin is not effective. Defendants further failed to disclose that Kevetrin does not activate the p-53 gene, a tumor suppressor. Additionally, Defendants did not disclose that its president, Krishna Menon, did not earn his PhD in Pharmacology from Harvard University.
Future Woman on May 10, 2013 published a profile article on Dr. Menon, who confirmed earning his PhD in Pharmacology from Harvard University. The Company announced in its September 9, 2013 press release the purchase of Brilacidin from PolyMedix, Inc. pursuant to an asset purchase agreement, and touted the efficacy of Brilacidin in combating acute bacterial skin and skin structure infections. Then on January 20, 2015, the Company issued a press release emphasizing Kevetrin's ability to activate the p-53 gene.
In a published report on August 6, 2015, SeekingAlpha.com asserted that Cellceutix, it is a shell corporation, its science is demonstrably unviable, it is run by a management team with a history of shareholder value destruction. The article also confirmed that Menon did not receive his PhD from Harvard. Additionally, it asserted that Brilacidin was not effective against any of the eight bacteria strains targeted in the Phase II clinical trial, will not be approved, and is without value. Finally, the article stated that Kevetrin does not stop cancer stem cells because it inhibits the release of MDMX and MDM2 proteins, which are the natural inhibitors of the p-53 gene. On this news, the Company’s shares declined $0.73 per share, to close at $1.71 per share on August 6, 2015.
Plaintiff seeks to recover damages on behalf of all Cellceutix Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, November 10, 2015 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Tue, September 15, 2015
by Robin Hester filed under