Cycurion Inc. (NASDAQ: CYCU) said it is pursuing legal action against parties it claims engaged in coordinated stock manipulation following a fabricated press release distributed on March 16, 2026.

The McLean, Virginia-based cybersecurity company said an unauthorized press release was distributed through ACCESS Newswire falsely announcing an acquisition. Chief Executive Officer Kevin Kelly stated in a letter to shareholders that the company has obtained trading records through subpoenas showing unusual activity.

According to the company, the short sale circuit breaker triggered at 9:30:01 AM on March 16, with the stock falling more than 10% before most investors could act. Cycurion reported short selling volumes increased between 33 times to over 180 times normal daily volume.

The company said records from one market maker showed a third party placed hundreds of orders with a 100% cancellation rate at nanosecond speeds on March 16, which Cycurion characterizes as spoofing under the Dodd-Frank Act and FINRA Rule 5210.

Cycurion estimates potential damages from the alleged manipulation could exceed $30 million. The company has issued litigation hold letters and compiled trading evidence as part of its investigation.

The company reported it has reduced net debt by over 70% and completed acquisitions of Secuvant and Digital Ally's Video Solutions segment. Cycurion said these acquisitions are integrating with its AI-powered ARx platform and, combined with contract wins, position the company to more than double its run-rate revenue.

The information is based on a company press release statement.