The Shareholders Foundation announces that an investigation for current long-term investors in NASDAQ:CYTR shares was initiated over potential breaches of fiduciary duties by certain CytRx officers and directors.
Investors who purchased shares of CytRx Corporation (NASDAQ:CYTR) and currently hold any of those (NASDAQ:CYTR shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm concerns whether certain CytRx Corporation (NASDAQ:CYTR officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
CytRx Corporation reported that its annual Total Revenue increased from $0.10 million in 2012 to $0.30 million in 2013 while its respective Net Loss increased from $17.96 million to $47.49 million. Shares of CytRx Corporation (NASDAQ:CYTR) grew from $2.10 per share in November 2013 to as high as $8.08 per share on January 10, 2014, respectively $7.98 per share on January 30, 2014.
On March 13, 2014 an article was published that alleged CytRx Corporation hired The DreamTeam Group to tout its stock. According to the allegations DreamTeam Group itself then published a variety of articles, many if not all of which misleadingly omitted to disclose that DreamTeam Group was paid by CytRx Corporation to promote it and that several of the articles were also falsely attributed to various third parties. Shares of CytRx Corporation (NASDAQ:CYTR) declined from over $8 per share in January 2014 to as low as $2.92 per share in April 2014.
Shortly after the article a lawsuit was filed against CytRx Corporation over alleged securities laws violations. The plaintiff claims that CytRx Corporation, its CEO, and two stock promotion firms made misleading statements and failed to disclose that numerous articles touting CytRx Corporation stock issued by the stock promotion firms were paid stock promotions and when the market began to learn of the true facts through partial disclosures, the value of CytRx Corporation stock dropped damaging investors.
Those who purchased shares of CytRx Corporation (NASDAQ:CYTR), have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North – Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com