NEW YORK, April 19, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Star Scientific, Inc. ("Star Scientific" or the "Company") (Nasdaq:STSI) and certain of its officers. The class action filed in United States District Court, Eastern District of Virginia, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Star Scientific between October 31, 2011 and March 18, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Star Scientific securities during the Class Period, you have until May 24, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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 US 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 and its directors had received subpoenas from the US Attorney's office. The Company also announced that it was conducting an internal investigation regarding these transactions.
On this news Star Scientific 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, Plaintiff and other Class members have suffered significant losses and damages.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.