On December 10, 2015, Lead Plaintiff and Defendants reached an agreement to settle In re CytRx Corporation Securities Litigation, No. 2:14-cv-01956-GHK-PJW, a consolidated securities class action lawsuit pending in the United States District Court for the Central District of California. This case was brought against the Company, several current and former directors and officers, and certain third parties following allegations of materially misleading statements and omissions made in connection with a stock promotion scheme.
The terms of the agreement provide for a settlement payment to the class of four million dollars ($4,000,000.00) in cash and four million five hundred thousand dollars’ ($4,500,000.00) worth of shares to the class. The number of shares will be determined based upon the prevailing stock price at the time of the court’s final approval of the settlement agreement. The settlement is subject to Court approval.