A law firm recently alerted shareholders of a biopharmaceutical company that a securities class action lawsuit was filed due to potential federal securities law violations.
Robbins Arroyo, LLP, noted that the litigation was filed in the U.S. District Court for the Central District of California against CytRx Corporation. This includes all shareholders who purchased stock in the company during the class period between Nov. 22, 2013, and March 13, 2014. Shareholders alleged in the suit that the company's leaders violated the Securities Exchange Act of 1934.
On Feb. 12, 2014, a report from TheStreet.com noted that the company had an investor relations firm that sent out articles that gave the company positive press while giving author names that did not actually have any involvement in the writing process. When this information came out, the company's stock declined to $6.04 per share, which was $0.56 per share, or 8.5 percent, lower than the previous level.
The company had its stock drop again on March 13, 2014. This occurred due to an article published on SeekingAlpha.com, which noted the company's leaders took part in the payment for the articles that artificially improved its stock level. Its shares then fell to $4.17, which was $0.61 per share lower.
For those who would like to learn more about the action, it is possible to discuss these matters with the law firm. The best person to speak with is Darnell Donahue, and he can be reached by telephone or email. The law office's website also has an information form that shareholders can fill out and submit.
Second lawsuit underway
Another law office specified that further action was taken against CytRx due to many of the same allegations.
Shareholders have the option to apply for the lead plaintiff position in the case, but they would need to do this by filing the correct paperwork with the court by May 14, 2014. This is not necessary for those who want to collect in the event of a monetary return. It is an option to select the law firm to represent the shareholder, but this is not mandatory.
For those who are looking to learn more about the lawsuit, contacting the law firm is an option. Sharon Lee can be reached by telephone, while there is also further information available on the law office's website.