According to the complaint, CytRx is a biopharmaceutical research and development company specializing in oncology. One of the company’s primary trial drugs is “aldoxorubicin.”
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the clinical hold placed on the Phase 3 trial of aldoxorubicin for soft tissue sarcomas (“STS”) would prevent sufficient follow-up for patients involved in the study; (2) that, as a result, nearly half of all patients would be censored (excluded) from the progression free survival evaluation; (3) that, in response, CytRx would likely conduct a second analysis; (4) that, as such, the results of the trial could be materially affected and/or approval of aldoxorubicin for STS could be delayed; and (5) that, as a result of the foregoing, the defendants’ statements about CytRx’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
The Class Period commences on November 18, 2014, when CytRx announced that the United States Food and Drug Administration placed CytRx’s clinical trials for aldoxorubicin on a partial hold in response to a patient death.
The complaint alleges that 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 STS. The company disclosed that “the study did not show a significant difference between aldoxorubicin and investigator’s choice therapy for [progression free survival] . . . .” Moreover, CytRx disclosed that a partial clinical hold in November 2014 led to insufficient follow-up for nearly two-thirds of patients who entered the Phase 3 study after the hold was resolved and enrollment resumed. As a result, nearly half of all patients were censored (excluded) from the progression free survival evaluation. Finally, CytRx announced that it “expects to conduct a second analysis, which will include longer patient follow-up and allow for greater maturation of all endpoints.”
Following this news, CytRx’s stock price fell $1.50 per share, or 59.7%, to close at $1.01 per share on July 12, 2016, on unusually heavy trading volume. The company’s stock price continued to decline over the next two trading days, falling 10%, to close at $0.90 per share on July 14, 2016.
If you are a member of the class described above, you may no later than September 23, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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