According to the law firm press release, CytRx, its CEO, and two stock promotion firms made misleading statements and failed to disclose that numerous articles touting CytRx stock issued by the stock promotion firms were paid stock promotions. According to the suit, when the market began to learn of the true facts through partial disclosures, the value of CytRx stock dropped damaging investors.
On June 13, 2014, the Court issued an Order consolidating related cases, appointing lead plaintiff, and approving lead counsel. Lead plaintiff filed a consolidated complaint on October 1.
On July 13, 2015, the Court issued an Order granting in part and denying in part Defendants' motions to dismiss.
On December 8, 2015, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on January 20, 2016. The Court issued an Order granting final approval of Settlement and awarding Attorneys' Fees and Expenses on May 18.
On September 25, 2017, the Court issued an Order granting Lead Plaintiff's Motion for Distribution of Net Settlement Fund.