Cycurion settles defamation case over anonymous fraud accusations

Cycurion, Inc. (NASDAQ: CYCU) announced it has resolved a John Doe defamation lawsuit filed in the United States District Court for the Eastern District of Virginia, according to a company press release.

The defendant, who published accusations under anonymous aliases, signed a written retraction and apology acknowledging that claims of fraud, securities violations, stock manipulation, and other criminal conduct against Cycurion and its officers were false and lacked factual basis.

Under the settlement terms, the defendant is permanently prohibited from making or publishing statements that defame Cycurion or its leadership, including any suggestions of fraud or criminal conduct. The defendant is also banned from trading Cycurion securities or derivatives, advising others to do so, or publishing commentary about the company on any public platform.

The defendant agreed to cooperate with the company regarding short selling and naked short selling of Cycurion stock, as well as any coordination with other investors, short sellers, or market makers. A confession of judgment will be held in escrow and additional remedies are available if the defendant breaches the agreement. Financial terms were not disclosed.

"We do not litigate for theater. We said we would pursue the people who used aliases to accuse this Company of crimes it did not commit. We did," said L. Kevin Kelly, Chairman and Chief Executive Officer of Cycurion. "The defendant has retracted those statements in writing and apologized. He is barred from repeating them, barred from trading our stock, and required to cooperate. Words have consequences. So do false ones."

Cycurion stated it intends to continue identifying anonymous posters through court proceedings and holding them accountable for defamatory statements. The company noted that this resolution applies only to the John Doe defamation action, and that separate previously disclosed legal matters remain pending.

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