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 "Class Period").
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 securities.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 transactions. 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.