The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose: (1) the clinical hold on the Phase 3 trial of aldoxorubicin for STS would prevent sufficient follow-up for patients involved in the study; (2) as a result, nearly half of all patients would be excluded from the progression free survival evaluation; (3) in response, CytRx would likely conduct a second analysis; (4) the results of the trial could be materially affected and/or approval of aldoxorubicin for STS could be delayed; and (5) as a result, the Company's statements about CytRx's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Specifically, on July 11, 2016, CytRx issued a press release announcing the results of the Company's Phase 3 clinical trial of aldoxorubicin compared to investigator's choice therapy in patients with relapsed or refractory soft tissue sarcomas. The press release disclosed that the Phase 3 clinical trial failed to show a significant difference between aldoxorubicin and investigator's choice therapy. In addition, CytRx disclosed that a partial clinical hold in November 2014 led to insufficient follow-up for approximately two-thirds of patients who entered the study after the hold was resolved. As a result, nearly half of all patients were excluded from the evaluation. Lastly, CytRx announced that it would conduct a second analysis that will include a longer patient follow-up and allow for greater maturation of all endpoints.
On this news, CytRx's share price fell from $2.51 per share on July 11, 2016 to a closing price of $1.01 on July 12, 2016—a $1.50 or a 59.76% drop.
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If you invested in CytRx common stock or options between November 18, 2014, and July 11, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/CYTR. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding CytRx's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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