Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against CytRx Corporation
Oklahoma City, OK (August 1, 2016) – On July 25, 2016, a securities class action lawsuit was filed in the United States District Court for the Central District of California against CytRx Corporation (NASDAQ: CYTR). 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 November 18, 2014 through July 11, 2016. More specifically, this litigation was filed because defendants issued false and misleading statements to investors and/or failed to disclose that: (1) the clinical hold placed on the Phase 3 trial of aldoxorubicin for STS would prevent sufficient follow-up for patients involved in the study; (2) nearly half of all patients would be censored (excluded) from the progression free survival evaluation; (3) CytRx would likely have to conduct a second analysis; (4) the results of the trial could be materially affected and/or approval of aldoxorubicin for STS could be delayed; and (5) as a result, CytRx’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
According to the complaint, following a July 11, 2016 press release announcing that as a result of a clinical hold, the analysis from the Phase 3 trial of aldoxorubicin did not provide sufficient follow-up for the nearly two-thirds of the patients who entered the trial after the hold was resolved and enrollment resumed, which resulted in nearly half of all patients being excluded from the progression free survival evaluation and CytRx having to conduct a second analysis, the value of CytRx shares declined significantly. On this news, CytRx’s stock price fell $1.50 per share, to close at $1.01 per share on July 12, 2016, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of all CytRx 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 Friday, September 23, 2016 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 email@example.com, 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 Mon, August 1, 2016
by Robin Hester filed under