Hearing Set in Star Scientific Investor Suit in Virginia

By: AP
By: AP
A federal judge is set to hear a motion to dismiss a lawsuit claiming Star Scientific misled investors.

http://www.starscientific.com/

January 7, 2013

RICHMOND, Va. (AP) - A federal judge is set to hear a motion to dismiss a lawsuit claiming Star Scientific misled investors.

A hearing is scheduled for Tuesday in U.S. District Court in Richmond.

The shareholder suit alleges that the dietary supplement maker trumped up claims for its anti-inflammatory supplement and made false claims about the company's business.

The suit also claims Star Scientific delayed telling investors about a federal investigation focused on transactions involving its securities. The company has since said it doesn't expect to be prosecuted.

Star Scientific is asking that the suit be dismissed.

Authorities continue to investigate a gift scandal involving Gov. Bob McDonnell and former Star Scientific CEO Jonnie Williams.

Federal regulators also issued a warning letter to Star Scientific last month saying it is illegally marketing two products.


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