Federman & Sherwood Investigates CytRx Corporation for Possible
Violations of Federal Securities Laws
September 16, 2014 11:35 AM Eastern Daylight Time
OKLAHOMA CITY--(BUSINESS WIRE)--The law firm of Federman & Sherwood has initiated an investigation into CytRx Corporation (NASDAQ: CYTR) with respect to possible violations of federal securities laws.
CytRx Corporation (“CytRx”) is a pharmaceutical research and development company headquartered in Los Angeles, California. Federman & Sherwood’s investigation focuses on allegations that CytRx hired a promoter, The DreamTeam Group, to publish favorable articles about CytRx stock without disclosing to the investing public that CytRx had paid The DreamTeam Group to promote the Company’s stock. This paid promotion caused the price of CytRx stock to become inflated. While the stock prices were inflated, on January 31, 2014 the Company issued 11.5 million shares of stock in a Secondary Public Offering. An article was then published by SeekingAlpha.com on March 13, 2014 alleging that the DreamTeam articles were written under multiple aliases, and were coordinated with the release of news by the Company in order to amplify the effect of the news on the Company’s stock prices.
On August 21, 2014, Chief Judge George H. King, of the Federal Court for the Central District of California, remanded a current class action suit brought against CytRx and its senior officers on behalf of investors who purchased shares in the Company’s January 31, 2014 Secondary Offering. The case is now proceeding in California Superior Court for the County of Los Angeles.
If you purchased CytRx securities that can be traced to the Company’s Secondary Offering on January 31, 2014, and have information to assist in our investigation, or, have any questions or concerns regarding this notice or preservation of your rights, please contact our office. Federman & Sherwood has extensive nationwide experience in representing investors in securities, derivative and merger-related shareholder class actions, and has been appointed as lead counsel in multiple complex cases.
Posted on Tue, September 16, 2014
by K. Lynn Nunn