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REPORT: Shareholder sues Star Scientific


By Burl Rolett

RICHMOND, Va. ( – A Glen Allen-based pharmaceutical company embroiled in a scandal related to gifts received by Gov. Bob McDonnell could now be facing trouble from within.

A lawsuit filed July 8 in Richmond City Circuit Court alleges that Star Scientific’ s board of directors engaged in a “campaign of deception” that eventually unraveled, tarnishing the company’s reputation and pushing down the price of its stock.

The suit, which plaintiff Harold Levine filed on behalf of all Star shareholders, targets five members of the company’s board of directors: chief executive Jonnie Williams, president and chief operating officer Paul Perito, Christopher Chapman, Neil Chayet and Burton Haynes. The suit claims that Star misled investors in 2012 by touting an association with Johns Hopkins University that did not exist.

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