NEW YORK, April 15, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP reminds investors of the May 13, 2014 deadline to file for lead plaintiff in the securities fraud class action against CytRx Corporation (Nasdaq:CYTR) ("CytRx" or "the Company"). Investors who have suffered financial losses can contact Gregory Stone at firstname.lastname@example.org or (212) 545-4774.
The securities fraud class-action lawsuit filed against CytRx on March 14, 2014 is on behalf of all persons who purchased or otherwise acquired CytRx stock between November 20, 2013 and March 13, 2014 (the "Class Period"). The lawsuits also cover those who purchased CytRx stock in the secondary stock offering completed on February 5, 2014, in which CytRx raised more than $80 million.
The complaint, filed in the U.S. District Court for the Central District of California, alleges that the Company violated federal securities laws when it employed The DreamTeam Group to write misleading articles under aliases without disclosing payment for the articles or any affiliation with the company. The complaint alleges that following the dissemination of CytRx's alleged false stock-promoting statements, the company's stock traded at artificially inflated prices during the Class Period and thus allowed the company to take advantage of this inflation to issue a secondary stock offering.
On February 12, 2014, a columnist at TheStreet.com published an article, "Galena Biopharma Pays For Stock-Touting Campaign While Insiders Cash Out Millions," claiming an affiliated biotechnology company was engaging in a misleading campaign to boost the company's stock price. Following its publication, CytRx's alleged stock-touting practices and employment of the same firm, known as the "DreamTeam," were unveiled. Following this news, CytRx's stock price fell from $6.60 to a close of $6.04.
Subsequently, on March 13, 2014, an additional published report alleged that CytRx shares quadrupled during the promotion managed by DreamTeam and that company management edited and approved the paid articles. Following publication of this article, CytRx stock fell from $4.78 per share to a close of $4.17 per share on March 13, 2014.
If you are a member of the Class described above, you may move the Court no later than May 13, 2014, to serve as lead plaintiff, if you meet certain legal requirements. If you are a shareholder of CytRx Corporation who suffered a material loss on your shares and would like additional information concerning your rights in this matter, please contact us immediately:
Gregory Nespole, Esquire
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
Wolf Haldenstein Adler Freeman & Herz LLP did not file the original complaint against CytRx Corporation.
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CONTACT: Wolf Haldenstein Adler Freeman & Herz LLP Phone Numbers: (800) 575-0735 (212) 545-4600 (212) 545-4774Source:Wolf Haldenstein Adler Freeman & Herz LLP