[September 16, 2014] |
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Federman & Sherwood Investigates CytRx Corporation for Possible Violations of Federal Securities Laws
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
inflted, 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.
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