Cytogenix (fka CYGX)

[DRCAL]

One of the main dirty trick purposes of lawsuits is to deter investors, especially angel ones or groups. The lawsuits are designed to scare away money. It is often an extortion type of tactic. I've seen lawsuits by companies usually shilling for a very large company. Multiple lawsuits are not infrequent in this type of case. Also, the tactic can be used by companies that just want to steal part of the action through an out of court settlement.
It takes a great deal of patience and excellent legal counsel to overcome these challenges. Personally, I get mad when I see it even as a minor investor who would like to become a major investor.