Star Scientific, Inc. Sued by Investor
SAN DIEGO and GLEN ALLEN, Va., April 2, 2013
SAN DIEGO andGLEN ALLEN, Va., April 2, 2013 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP announce that a purchaser of Star
Scientific, Inc. (NASDAQ: STSI) securities has filed a complaint in the U.S.
District Court for the Eastern District of Virginia. The complaint alleges
that Star Scientific and certain of its officers and directors violated the
Securities Exchange Act of 1934 between October 31, 2011 and March 18, 2013
(the "Class Period").
Star Scientific Accused of Making False and Misleading Statements Concerning
the Company's Business, Operational, and Compliance Policies
The complaint alleges that the Star Scientific, a drug manufacturing company
that produces products to promote a healthy lifestyle, such as dietary
supplements, issued a series of materially false and misleading statements to
investors regarding the company's business, operational, and compliance
policies. Specifically, the complaint alleges that certain officers and
directors delayed disclosure of the fact that the company had received
subpoenas from the U.S. Attorney's office investigating potential securities
fraud in Star Scientific's securities involving transactions dating back to
Star Scientific Price Drops Multiple Times: Concerned Shareholder Respond with
Further, Star Scientific, through its subsidiary Rock Creek, issued multiple
press releases from 2011 through 2013, which led investors to believe that
researchers at Johns Hopkins University had an active role in the clinical
testing of its retail nutritional supplement anatabine. However, on January
23, 2013, The Street published an article alleging that the company misled
investors regarding the role of John Hopkins University in the clinical
testing of anatabine. The article quoted Johns Hopkins school of Medicine
spokesperson Stephanie Desmon as stating, "The … clinical study was not
conducted at or approved by Johns Hopkins." On this news, Star Scientific's
stock declined $0.31 per share or nearly 12%, to close at $2.33 per share on
January 23, 2013.
Moreover, in January and February 2013, Star Scientific received subpoenas
from the U.S. Attorney's office for the Eastern District of Virginia
concerning an investigation into whether the company engaged in potentially
illegal transactions involving certain private placements and related party
transactions since 2006. Star Scientific failed to disclose this
investigation to investors until March 18, 2013, at which time the company
announced it was conducting an internal investigation. As a result, Star
Scientific shares declined a further $0.35 per share or 18% to $1.63 on March
If you purchased or otherwise acquired Star Scientific stock during the Class
Period and wish to serve as lead plaintiff, you must act no later than May 24,
2013. To discuss your shareholder rights, please contact attorney Darnell R.
Donahue at (800) 350-6003, email@example.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising. Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
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