Hagens Berman suit claims company insiders knowingly misrepresented the
company to investors
SEATTLE, Jan. 18 /PRNewswire/ -- Hagens Berman Sobol Shapiro filed a proposed class-action lawsuit on behalf of CellCyte Genetics Corporation (OTC Bulletin Board: CCYG) shareholders alleging company executives knowingly misrepresented the company and chief executive officer Gary A. Reys' background, causing company stocks to be traded at artificially inflated prices.
The lawsuit filed in U.S. District Court in Seattle claims defendants violated sections of The Exchange Act of 1934 during the class period of April 6, 2007 until and including January 9, 2008.
The complaint alleges that Reys' background was called into question after published news reports called out alleged discrepancies relating to Reys' finance degree from the University of Washington, a CPA designation, ties to the Washington Society of Certified Public Accountants and a strong track record within the pharmaceutical industry.
According to the complaint, CellCyte not only made these statements to potential investors but also to the Securities and Exchange Commission (SEC). These published statements had the cause and effect of creating an unrealistically positive assessment of CellCyte's prospects for investors.
According to the complaint, when CellCyte began looking for investors it sent unsolicited faxes to investors in Germany. The fax contained a story about CellCyte and a handwritten note announcing that "This is the stock that's about to take off!"
Additional claims made to both U.S. and German investors included "CellCyte shares could be the chance of your lifetime to turn $10,000 into $4 million, maybe even $15 million!" In addition to money making promises Reys' background was also touted in promotional materials, the complaint states.
Suspicion of the company came to light in early December 2007 when The
|SOURCE Hagens Berman Sobol Shapiro|
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