Bernstein Liebhard LLP Announces That A Securities Class Action Has Been Filed
Against Star Scientific, Inc.
NEW YORK, April 3, 2013
NEW YORK, April 3, 2013 /PRNewswire/ --Bernstein Liebhard LLP today announced
that a securities class action lawsuit has been commenced in the United States
District Court for the Eastern District of Virginia on behalf of a class (the
"Class") of purchasers of Star Scientific, Inc. ("Star" or the "Company")
(NASDAQ: STSI) securities between October 31, 2011 and March 18, 2013 (the
(Logo: http://photos.prnewswire.com/prnh/20120202/MM47134LOGO )
Star Scientific produces products that assist in maintaining a healthy
metabolism and lifestyle. Amongst various offerings, the Company sells a
dietary supplement which purportedly helps a body maintain a healthy level of
inflammation, and a cream that improves the appearance of the skin. Additional
products in development address Hashimoto's thyroiditis and neurological
disorders including Alzheimer's disease.
The Complaint alleges that throughout the Class Period, Defendants made
materially false and misleading statements regarding the Company's business,
operational and compliance policies. Specifically, Defendants made false
and/or misleading statements and/or failed to disclose that the Company
engaged in potentially illegal transactions involving certain private
placements and related party transactions since 2006 involving Star Scientific
On January 23, 2013, The Street published an article alleging, among other
things, that the Company misled investors regarding John Hopkins University's
involvement in Star Scientific's clinical testing of its retail nutritional
supplement Anatabine. On this news, Star Scientific shares declined $0.31 per
share or nearly 12%, to close at $2.44 per share.
In January and February 2013, the Company received subpoenas from the U.S.
Attorney's office investigating transactions in the Company's securities,
including related party transactions, dating back to 2006.
On March 18, 2013, the Company disclosed this investigation to investors,
announcing that the Company had received such subpoenas. The Company also
announced that it was conducting an internal investigation regarding these
On this news, Star shares declined $0.35 per share or nearly 18% to $1.63 on
March 19, 2013. As a result of defendants' wrongful acts and omissions, and
the precipitous decline in the market value of the Company's securities,
Plaintiffs and Class members have suffered significant losses and damages.
Plaintiffs seek to recover damages on behalf of all Class members who invested
in Star securities during the Class Period. If you invested in Star
securities as described above during the Class Period, and either lost money
on the transaction or still hold the security, you may wish to join in this
action to serve as lead plaintiff. In order to do so, you must meet certain
requirements set forth in the applicable law and file appropriate papers no
later than May 24, 2013.
A "lead plaintiff" is a representative party that acts on behalf of other
class members in directing the litigation. In order to be appointed lead
plaintiff, the court must determine that the class member's claim is typical
of the claims of other class members, and that the class member will
adequately represent the class. Under certain circumstances, one or more
class members may together serve as lead plaintiff. Your ability to share in
any recovery is not, however, affected by the decision whether or not to serve
as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel
of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Star shareholder and/or
have information relating to the matter, please contact Joseph R. Seidman, Jr.
at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and
shareholder rights cases and recovered over $3 billion for its clients. It
has been named to The National Law Journal's "Plaintiffs' Hot List" in each of
the last ten years.
You can obtain a copy of the complaint from the clerk of the court for the
United States District Court for the Eastern District of Virginia.
Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
ATTORNEY ADVERTISING. © 2013 Bernstein Liebhard LLP. The law firm responsible
for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New
York, New York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of Connecticut is Michael S. Bigin. Prior results
do not guarantee or predict a similar outcome with respect to any future
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP
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