Lawsuit Overview
Settlement Overview
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June 26, 2015 - The court approved the settlement and entered the order approving the plan of allocation and dismissed the action with prejudice.
March 2, 2015 - The court preliminarily approved the settlement.
February 5, 2015 - Parties filed an amended stipulation of settlement.
August 20, 2014 - The court denied the defendants' motion to dismiss.
October 25, 2013 - The defendants filed a motion to dismiss.
September 5, 2013 - The lead plaintiff filed an amended complaint on behalf of investors who purchased Star Scientific Inc (NASDAQ: STSI) common shares between May 10, 2011 and January 23, 2013. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between May 10, 2011 and January 23, 2013.
June 21, 2013 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.
May 24, 2013 - Lead plaintiff motions were filed.
March 25, 2013 - An investor in shares of Star Scientific Inc (NASDAQ: STSI) filed a lawsuit in the U.S. District Court for the Eastern District of Virginia against Star Scientific Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between October 31, 2011 and March 18, 2013.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of Star Scientific Inc (NASDAQ: STSI) between October 31, 2011 and March 18, 2013, that Star Scientific Inc and certain of its officers violated the Securities Exchange Act of 1934.
More specifically, the plaintiff alleges that Defendants allegedly made false and/or misleading statements and/or failed to disclose that Star Scientific Inc engaged in potentially illegal transactions involving certain private placements and related party transactions since 2006 involving Star Scientific Inc securities.
Star Scientific Inc (NASDAQ: STSI) reported that its annual Total Revenue increased from $0.85 million in 2010 to $1.72 million in 2011, while its Net Loss increased from $28.28 million in 2010 to $37.99 million in 2011.
On January 23, 2012, a report was published that alleged that Star Scientific Inc misled investors about the involvement of Johns Hopkins University in the clinical testing of the company's retail nutritional supplement anatabine.
On Jan 28, 2013, Star Scientific Inc commented on the report from January 23, 2013. Star Scientific Inc said that the report contained numerous false and misleading statements regarding the Company's anatabine research and the initial results of the ASAP Human Thyroid Health Study released by Star Scientific on January 7, 2013.
In January and February 2013 Star Scientific Inc received subpoenas from the US Attorney's office investigating transactions in Star Scientific’s securities, including related party transactions, dating back to 2006. On March 18, 2013, Star Scientific Inc 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 March 26, 2013, Star Scientific Inc responded to the lawsuit and said it will will vigorously contest each of the allegations in the complaint and that it is confident that the meritless nature of this lawsuit will cause it to be ultimately dismissed.
Shares of Star Scientific Inc (NASDAQ: STSI) declined from $2.95 per share in early January 2013 to as low as $1.371 on March 26, 2013, which is significantly below its current 52 week High of $5.05 per share.