Investors file lawsuit against Star Scientific

Posted at 4:18 PM, May 08, 2013
and last updated 2013-05-08 19:01:39-04

HENRICO COUNTY, Va. (WTVR) – Henrico-based Star Scientific is facing more legal woes.

Investors have filed a class action lawsuit claiming that company omitted or misrepresented material facts. [BONUS: Read the Star Scientific lawsuit here]

The lawsuit claims Star Scientific said its product, Anatabine, was researched at the John's Hopkins University -- and even got professional golfer Fred Couples to endorse it. The suit also claims that the company stated that Anatabine had FDA backing when it did not.

Star Scientific would not comment on the allegations, but did say that the company has never claimed that their products approved by the FDA. In fact, the company said each bottle and carton of Anatabloc contain the following disclaimer:

“These statements have not been evaluated by the Food and Drug Administration.  This product is not intended to diagnose, treat, cure, or prevent any disease.”   

The company has been in the headlines recently for giving gifts to Attorney General Ken Cuccinelli and Gov. Bob McDonnell.

Those gifts prompted an FBI investigation to learn more about the McDonnell family’s involvement with the company’s CEO Jonnie Williams -- and to determine if the gifts were appropriate under the law.

Last month an outside law firm was hired to represent the Commonwealth in a lawsuit filed by Star Scientific, a company that Attorney General Ken Cuccinelli formerly had investments in.

According to reports, Star Scientific sued the Commonwealth over a $700,000 tax bill.

Stay with CBS 6 News and for continuing coverage of this story.