Here is a good post by the loanranger and my respo

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It sounds like a frivolous lawsuit such as the one Rosen filed would not be possible if CTIX was already listed on NASDAQ and therefore protected by The Private Securities Litigation Reform Act of 1995. It is apparently too late for this case, but gaining the protections of The Private Securities Litigation Reform Act of 1995 is another MAJOR reason to uplist ASAP. - thefamilyman

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"b) Exclusions.--Except to the extent otherwise specifically
provided by rule, regulation, or order of the Commission, this section shall not apply to a forward-looking statement--
(1) that is made with respect to the business or
operations of the issuer, if the issuer--
(C) issues penny stock;"
www.gpo.gov/fdsys/pkg/PLAW-104publ67/html/PLAW-104publ67.htm

There are a number of different definitions of "penny stock", but this is what the CTIX 10-K itself says, so in all likelihood The Private Securities Litigation Reform Act of 1995 doesn't provide the company a safe harbor:
"Because our Class A Common Stock is considered “penny stock” you may have difficulty selling them in the secondary trading market.
Federal regulations under the Securities Exchange Act of 1934 (the “Exchange Act”) regulate the trading of so-called “penny stocks,” which are generally defined as any security not listed on a national securities exchange or NASDAQ, priced at less than $5.00 per share and offered by an issuer with limited net tangible assets and revenues. Since our Class A Common Stock currently is quoted on the OTC at less than $5.00 per share, our shares are “penny stocks” and may not be traded unless a disclosure schedule explaining the penny stock market and the risks associated therewith is delivered to a potential purchaser prior to any trade."


I think all that means is that the protection that that law provides isn't available to the company, so the case will simply rise or fall on the facts versus any "forward looking statement" exemption. - loanranger

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