A lawsuit was filed by an investor in Callisto Pharmaceuticals, Inc. (PINK:CLSP) in effort to stop the proposed takeover and other CLSP stockholders

San Diego, CA -- (SBWire) -- 08/14/2012 --An investor in shares of Callisto Pharmaceuticals, Inc. (PINK:CLSP) filed a lawsuit against directors of Callisto Pharmaceuticals, Inc. in effort to stop the proposed takeover of Callisto Pharmaceuticals, Inc. by Synergy Pharmaceuticals Inc.

Investors who are current stockholders of Callisto Pharmaceuticals, Inc. (PINK:CLSP), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that the defendants breached their fiduciary duties owed to investors in shares of Callisto Pharmaceuticals, Inc. (PINK:CLSP) by agreeing to a merger with Synergy Pharmaceuticals Inc. that would cancel the 40% stake Callisto Pharmaceuticals, Inc. currently holds in Synergy Pharmaceuticals.

On July 20, 2012, Synergy Pharmaceuticals Inc. (Nasdaq:SGYP) and Callisto Pharmaceuticals, Inc. (OTCBB:CLSP) announced that they have entered into a merger agreement pursuant to which Callisto Pharmaceuticals, Inc. will merge into Synergy Pharmaceuticals Inc.

Under the terms of the proposed transaction stockholders of Callisto Pharmaceuticals, Inc. (PINK:CLSP) will receive 0.17 shares of Synergy Pharmaceuticals Inc. common stock for each CLSP share they own.

Based on a closing price of NASDAQ:SGYP shares of $4.34 Callisto Pharmaceuticals, Inc. shareholders will receive about 0.7378 per share.

However, since July 20, 2012, NASDAQ:SGYP shares declined to as low as $3.69 per share on August 13, 2012. In addition, at least one analyst has set the high target price of CLSP shares at $3.00 per share.

Those who are current stockholders of Callisto Pharmaceuticals, Inc. (PINK:CLSP), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com