CytRx Corporation (NASDAQ:CYTR), a biopharmaceutical research and development company specializing in oncology, today announced that it reached a successful agreement to settle the consolidated securities class action lawsuit pending in the United States District Court for the Central District of California, titled In re CytRx Corporation Securities Litigation. The consolidated case was brought against the company and/or a number of current and former directors and officers following allegations of stock promotion. The agreement was reached in connection with a voluntary mediation led by the Honorable Judge Dickran Tevrizian, a retired federal judge from the Central District of California.
The settlement agreement contains no admission of liability or wrongdoing and includes a full release of CytRx and the current and former directors and officers in connection with the allegations. CytRx believes the allegations are completely without merit, and is settling the lawsuit to avoid potentially lengthy and costly litigation. The settlement is subject to definitive documentation, shareholder notice, and court approval.
The terms of the agreement provide for a settlement payment to the class of $4,000,000, of which at least $3,500,000 will be paid by the Company’s insurance carriers. The Company will also issue $4,500,000 worth of shares to the class, which will be between a minimum of 1,200,000 shares of common stock and a maximum of 1,800,000 shares of common stock to the class depending on the prevailing stock price at the time of the court’s final approval of the settlement agreement.
“We are pleased to reach a settlement agreement on the securities class action and believe it is in the best interests of CytRx and our shareholders. We will continue to focus on our pre-commercial activities for aldoxorubicin, our pivotal, global Phase 3 trial with aldoxorubicin in second-line soft tissue sarcomas, our newly designated drug candidate DK049, and additional research and development with our LADR™ technology,” said Steven A. Kriegsman, Chairman and CEO. (Original Source)
Shares of Cytrx closed yesterday at $2.67, down $0.12 or -4.30%. CYTR has a 1-year high of $5.42 and a 1-year low of $1.98. The stock’s 50-day moving average is $2.99 and its 200-day moving average is $3.06.
On the ratings front, Oppenheimer analyst Christopher Marai reiterated a Buy rating on CYTR, with a price target of $10, in a report issued on November 5. The current price target implies an upside of 274.5% from current levels. According to TipRanks.com, Marai has a total average return of 21.7%, a 57.2% success rate, and is ranked #35 out of 3637 analysts.
CytRx Corp is a biopharmaceutical research and development company specializing in oncology. Its oncology pipeline includes three clinical-stage drug candidates in various stages of development: Aldoxorubicin, Tamibarotene, and Bafetinib.