Have you suffered losses investing in Star Scientific (Rock Creek Pharmaceuticals)? If so, The White Law Group may be able to help.
Rock Creek Pharmaceuticals Inc., a drug development company formerly called Star Scientific Inc., filed for Chapter 7 bankruptcy liquidation on September 30th, according to a press release.
The Sarasota, Fla. company, and its two wholly owned subsidiaries, RCP Development Inc. and Star Tobacco Inc., also filed for Chapter 7, according to reports. RCP Development reported total assets of $31,308 and total liabilities of $51.957 million, while Star Tobacco reported total assets of $482,289 and total liabilities of $12.254 million.
Shares in the publicly traded company had been trading at a penny for much of the past three months until the filing at the end of September.
Jonnie R. Williams Sr., the companies’ founder and CEO was involved in a gifts corruption scandal that resulted in the convictions of former Gov. Bob McDonnell and his wife, Maureen. The case against the former governor was overturned, and charges for both of them have been dropped, according to reports. Williams resigned form Star Scientific Aug. 15, 2014.
Star Scientific changed its name to Rock Creek Pharmaceuticals in June 2014, moved headquarters and replaced most of its board of directors and top management.
Unfortunately for investors, the company was forced to suspend sales of its supplement Anatabloc after the U.S. Food and Drug Administration had warned that it was marketing the supplement in violation of federal regulations. Rock Creek also suspended sales of its other dietary supplement, called CigRx.
Star Scientific appears to have raised some money through a Reg D private placement offering. Reg D private placements structured like Star Scientific are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%, as well as additional “due diligence fees” that can range from 1-3%.
Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.
If you suffered losses investing in Star Scientific (Rock Creek Pharmaceuticals) and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888.637.5510 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.