San Diego, CA -- (ReleaseWire) -- 07/23/2014 -- A current investor in NASDAQ:CYTR shares filed a lawsuit against certain directors of CytRx Corporation alleging breaches of fiduciary duties.
Investors who are current long term investors in CytRx Corporation (NASDAQ:CYTR) shares have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff alleges that certain executives of CytRx Corporation hired a public relations firm that promoted in at least 13 articles containing allegedly false statements the stock of CytRx Corporation on certain investing websites without disclosing that it was paid to do so, exposing CytRx Corporation potentially liable for securities fraud.
The plaintiff claims that before CytRx's Initial Public Offering (“IPO”) closed in February 2014, and during the relevant period, CytRx Corporation paid the PR firm, The DreamTeam Group, a known stock-promotion firm with questionable marketing tactics, $65,000 and as a result of the campaign by DreamTeam Group CytRx's stock price began to rise, from a low of $2.00 on November 19, 2013, to a high of $8.24 on January 10, 2014. The plaintiff says that CytRx Corporation sold shares at its initial public offering at a price of $6.50 per share, which allegedly was inflated by DTG's promotional work.
On March 13, 2013 an article was published that alleged CytRx Corporation hired The DreamTeam Group to tout its stock. Shares of CytRx Corporation (NASDAQ:CYTR) declined from almost $8 per share in January 2014 to as low as $2.92 per share in April 2014.
NASDAQ:CYTR shares closed on July 21, 2014, at $3.62 per share.
Those who purchased shares of CytRx Corporation have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego