Star Scientific Issues Response, Says to 'Vigorously Contest' Claims
Paul L. Perito, Esquire, Chairman, President, and COO of Star Scientific, Inc. (NASDAQ: STSI), issued the following statement on behalf of Star Scientific and Rock Creek Pharmaceuticals, Inc.:
This morning, Star Scientific was alerted to the filing of a purported class action lawsuit against the Company in the U.S. District Court for the Eastern District of Virginia (Richmond Division). The complaint, which lists one named plaintiff, focuses on the validity of the Company's research and development related to the active ingredient in the Company's now marketed dietary supplements and cosmetic products. Star Scientific is proud of its worthy science-based products, as well as the fact that these products are used by thousands of satisfied regular customers. We stand behind our scientific research, and that of other credentialed third-parties, that has been conducted on our anatabine compound as well as the reporting on the results of that research. Accordingly, the Company will vigorously contest each of the allegations in the complaint. We are confident that the meritless nature of this lawsuit will cause it to be ultimately dismissed.
In a cursory review of the complaint, the Company noted, with interest, that the purported lead class action plaintiff is an individual who purchased 500 shares of Star Scientific stock on January 23, 2013, and held the stock for only seven days, selling his 500 shares on January 30, 2013. For a range of compelling reasons, it is difficult to conceive of a more inappropriate class action plaintiff representative. In addition, the lawsuit seems to result from a wide, and until now, unsuccessful search by plaintiffs' law firms seeking to find anyone to bring any kind of action without regard to its merits.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.