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Former shareholder suing Star Scientific Inc.

Published On: Mar 27 2013 07:54:00 AM CDT

According to the Associated Press, Star Scientific Inc. is being sued by a former shareholder who alleges that the company misled investors.

Francis J. Reuter's lawsuit also says Henrico County-based Star Scientific failed to inform shareholders in a timely manner about a government investigation of its securities transactions.

Star Scientific said in a statement to the Richmond Times-Dispatch that the allegations don't have any merit.

A Virginia Beach law firm filed the lawsuit on Reuter's behalf this week in federal court in Richmond.

The lawsuit alleges that Star Scientific misled investors about research on the potential health benefits of dietary supplements that the company sells.

Star Scientific says it stands behind its research, along with research conducted by third parties.