SAN FRANCISCO -- (BUSINESS WIRE) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of those who purchased the securities of CytRx Corporation (“CytRx” or the “Company”) (Nasdaq:CYTR), between November 20, 2013 and March 13, 2014, inclusive (the “Class Period”), including purchasers in the Company’s secondary public offering completed on or about February 5, 2014.
If you purchased the securities of CytRx during the Class Period, you may move the Court for appointment as lead plaintiff by no later than May 14, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
CytRx investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the CytRx Securities Class Litigation
The actions charge CytRx, its Chief Executive Officer, and stock promotion firms the DreamTeamGroup (“The DreamTeam”) and MissionIR with violations of the Securities and Exchange Act of 1934. CytRx, headquartered in Los Angeles, California, is a biopharmaceutical research and development company specializing in oncology.
The actions allege that during the Class Period, defendants made misleading statements and failed to disclose that numerous articles issued by The DreamTeam and MissionIR touting CytRx stock were in fact paid stock promotions under the control of CytRx.
On February 12, 2014, an article published on TheStreet.com reported that Galena BioPharma, Inc. (“Galena”) had paid The DreamTeam and MissionIR to promote its stock without properly disclosing its paid relationship and that CytRx had also retained DreamTeam. On this news, the price of CytRx stock fell $0.54, or 8.18%, from its closing price of $6.60 per share on February 11, 2014, to close at $6.04 per share on February 12, 2014.
On March 13, 2014, an article published on SeekingAlpha.com revealed that CytRx had control and knowledge of The DreamTeam’s activities. The article accused The DreamTeam of attempting to hire the author to write paid promotional articles about CytRx without disclosing payment. The article provided detailed emails and attachments indicating that CytRx’s management was involved in reviewing and editing the paid articles at the same time that CytRx intended to sell and/or issue shares, and that The DreamTeam’s promotional campaign used multiple aliases on third party websites, sometimes pretending to be hedge fund managers touting the stock. On this news, the price of CytRx stock fell $0.61, or 12.76%, from its closing price of $4.78 per share on March 12, 2014, to close at $4.17 per share on March 13, 2014, on exceptionally heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation for eleven years. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eleven consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.