Cycurion, Inc. Statement Regarding Unauthorized Press Release, Fabrication of Investor Relations Contact, and Related Market Activity – Litigation Counsel Engaged to Address Short Selling and Manipulation
Rhea-AI Summary
Cycurion (Nasdaq: CYCU) said an unauthorized press release claiming an acquisition over $150 million was false and issued without company authorization on March 16–17, 2026. Cycurion notified FINRA and Nasdaq MarketWatch, engaged litigation counsel, obtained court subpoenas, and is using internal cybersecurity resources to investigate and protect communications.
The company cites a verified contracted backlog of $112.4 million, reports trading volatility tied to the false release, and urges reliance on verified Cycurion channels.
Positive
- Contracted backlog of $112.4 million
- Company engaged litigation counsel to pursue remedies
- Company activated internal cybersecurity defenses
- Notified regulators: FINRA and Nasdaq MarketWatch
Negative
- Unauthorized false press release claimed >$150 million acquisition
- Trading volatility: shares ranged approximately $1.00–$2.40
- Company reports ongoing dissemination of false or defamatory information
News Market Reaction – CYCUW
On the day this news was published, CYCUW gained 5.21%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
CYCUW gained 2.43% with modestly elevated volume while scanner data shows no sector-wide momentum. Some peers (e.g., DAICW +16.33%, VEEAW +87.08%) had sharp moves, but others were flat, indicating stock-specific dynamics rather than a coordinated sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 26 | Special meeting adjourned | Neutral | -10.7% | Adjourned special meeting to allow more time for warrant-related voting. |
| Feb 11 | Cost efficiency initiative | Positive | +0.0% | Announced 2026 reorganization targeting $2.2M annualized cost efficiencies. |
| Feb 03 | Analyst coverage | Positive | +0.3% | Buy rating and $7 target citing $80M backlog and valuation metrics. |
| Jan 22 | Acquisition MOU | Positive | +0.0% | MOU to acquire Kustom Entertainment video division with added revenue/backlog. |
| Dec 30 | Year-end business update | Positive | +0.0% | Reported $80M contracted backlog and stronger liquidity exiting 2025. |
Recent news often highlighted growth, backlogs, and strategic actions, yet price reactions have been muted or negative, with only one clearly positive move aligning with constructive news.
This announcement addresses market manipulation and an unauthorized acquisition press release, contrasting with prior months’ focus on growth and capital actions. Earlier updates emphasized cost efficiencies of $2.2 million in 2026, analyst coverage citing an $80 million contracted backlog, and an MOU for a $6.0–$8.4 million acquisition aimed at adding revenue and backlog. A December 2025 update also highlighted an $80 million backlog and improved liquidity. Against that backdrop, today’s statement centers on protecting information integrity rather than introducing new financial targets.
Market Pulse Summary
The stock moved +5.2% in the session following this news. A strong positive reaction aligns with management’s emphasis on a contracted backlog of $112.4 million and ongoing contract wins, while the clarification of a false acquisition claim helped reset expectations. Past news often produced limited upside, so a larger move would have marked a notable shift. Investors might have weighed legal and reputational risks against the company’s stated operational momentum and dispute-resolution efforts.
Key Terms
short selling financial
stock manipulation financial
AI-generated analysis. Not financial advice.
MCLEAN, Va., March 17, 2026 (GLOBE NEWSWIRE) -- Cycurion, Inc. (Nasdaq: CYCU) (“Cycurion” or the “Company”), a trusted leader in IT cybersecurity solutions, today issued the following statement in response to an unauthorized press release disseminated yesterday:
The Company has confirmed that a press release claiming an acquisition agreement exceeding
Yesterday’s trading volatility, with the Company’s shares trading between approximately
The Company is aware of other efforts to disseminate false or defamatory information about Cycurion, including via emails and online channels. Legal action has been initiated to address these activities.
Cycurion has secured court-issued subpoenas for two individuals involved in spreading false information online. Cycurion engaged litigation counsel to pursue appropriate remedies related to possible short selling and stock manipulation. Cycurion is utilizing its internal cybersecurity capabilities to support these efforts and strengthen protections going forward.
“We remain fully committed to transparency and delivering value to our shareholders,” said Kevin Kelly, CEO of Cycurion. “Our fundamentals are strong, with a verified contracted backlog of
Cycurion is encouraged by ongoing momentum. We continue to secure meaningful new contracts with federal agencies and enterprise clients, bolstering our backlog and revenue visibility. Our pipeline of potential acquisitions also presents opportunities for meaningful top- and bottom-line growth through integration with our core platform.
The Company advises investors, media, and the public to disregard the unauthorized release and rely exclusively on communications from verified Cycurion channels.
About Cycurion, Inc.
Based in McLean, Virginia, Cycurion (NASDAQ: CYCU) is a forward-thinking provider of IT cybersecurity solutions and AI, committed to delivering secure, reliable, and innovative services to clients worldwide. Specializing in cybersecurity, program management, and business continuity, Cycurion harnesses its AI-enhanced ARx platform and expert team to empower clients and safeguard their operations. Along with its subsidiaries, Axxum Technologies LLC, Cloudburst Security LLC, and Cycurion Innovation, Inc., Cycurion serves government, healthcare, and corporate clients committed to securing the digital future. For more information, visit www.cycurion.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements relating to the operations and prospective growth of Cycurion’s business.
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Such statements include, but are not limited to, statements regarding the anticipated closing of the offering; the Company’s anticipated use of proceeds from the offering; the acceleration of the Company’s inorganic growth strategy; the continued execution on the Company’s backlog; and other statements that are not historical facts, including statements which may be accompanied by words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Cycurion and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the outcomes of the Company’s investigations, any potential legal proceedings, or the future performance of the Company’s stock. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed by Cycurion with the U.S. Securities and Exchange Commission. Cycurion anticipates that subsequent events and developments may cause its plans, intentions, and expectations to change. Cycurion assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Cycurion’s plans and expectations as of any subsequent date.
Cycurion Investor Relations:
(888) 341-6680
investors@cycurion.com
Cycurion Media Relations:
(888) 341-6680
media@cycurion.com
