Star Scientific, Inc. (NASDAQ:STSI) Shareholder Class Action Lawsuit

A lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia by an investor who owns Star Scientific, Inc. (NASDAQ: STSI) shares. The lawsuit alleges that Star Scientific, Inc. made statements that were false and misleading in the time period between October 31st 2011 and March 18th 2013. 

If you have purchased shares of Star Scientific, Inc. (NASDAQ:STSI) between October 31, 2011 and March 18, 2013, call 1-800-934-2921 right now to protect your rights.

Filing deadline:  05/24/2013

One of the allegations brought forward by the plaintiff, on behalf of all investors who acquired Star Scientific, Inc. shares between October 31st 2011 and March 18th 2013, is that some officers of Star Scientific, Inc. are in violation of the Securities Exchange Act of 1934.

The compliant alleges that there were false or misleading statements made by the Defendants. It also alleges that Star Scientific Inc. did not disclose the fact that it made transactions that were possibly illegal related to some private placements and other related transactions, taking place since 2006 and involving securities of NASDAQ:STSI.

According to Star Scientific, Inc., its Total Revenue rose from $0.85 million in 2010, reaching 1.72 million in 2011. The Net Loss reported in 2010 was $28.28 million and rose to $37.99 million in 2011.

A report was made public on January 23rd 2012, which contained allegations that Star Scientific, Inc. made misleading statements to investors about John Hopkins University's involvement in the company's clinical testing or a nutritional supplement called anatabine.

Comments on the report were released on January 28th 2013 by Star Scientific, Inc. They state that the report contains various instances of false information about the antabine research conducted by the Company as well as the results contained in the ASAP Human Thyroid Health Study that was made public by the Company on January 7th 2013.

The U.S. Attorney's office has sent subpoenas to Star Scientific in January and February 2013. These subpoenas were sent following an investigation by the U.S. Attorney's office of various transactions related to Star Scientific, Inc.'s securities and some related party transaction, which go back to the year 2006.

This was disclosed to investors by the Company on March 18th 2013, accompanied by an announcement by Star Scientific, Inc. (NASDAQ: STSI) that an internal investigation was underway related to those transactions.

The share price of Star Scientific, Inc. went down from $2.95 per share as seen in January 2013 to $1.371 per share on March 26th 2013. This price is much lower than the current 52 week High, which was reached $5.05 per share.

Own shares of Star Scientific, Inc. (NASDAQ:STSI)? Contact us to protect your rights.

If you have purchased shares of Star Scientific, Inc. (NASDAQ:STSI) between October 31, 2011 and March 18, 2013, call 1-800-934-2921 right now to protect your rights. Complete the form on this page or call attorney Bill Kyros at 1-800-934-2921 right now to protect your rights. 

Complete the form below for a free no obligation consultation. 

 

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