According to the law firm press release, 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.
On June 21, 2013, the Court issued an Order consolidating actions, appointing lead plaintiff, and approving the selection of lead counsel. Lead Plaintiff filed a Consolidated and Amended Complaint on September 5th.
On August 20, 2014, the Court issued an Order denying the Motion to Dismiss.
On February 5, 2015, the parties entered a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on March 2. Final Judgment was entered and this case dismissed on June 26.