This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Star Scientific, Inc. Sued By Investor

Stocks in this article: STSI

SAN DIEGO and GLEN 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").  

(Logo:  http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)  

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 2006.  

Star Scientific Price Drops Multiple Times: Concerned Shareholder Respond with Lawsuit

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 19, 2013.

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, ddonahue@robbinsarroyo.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: http://www.robbinsarroyo.com/shareholders-rights-blog/star-scientific-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.  

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,187.87 -228.98 -1.31%
S&P 500 2,002.75 -18.50 -0.92%
NASDAQ 4,650.2560 -33.1510 -0.71%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs