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Judge stays discovery in Star Scientific suit
Question of the Day
RICHMOND, Va. (AP) - A federal judge is halting the discovery process in a lawsuit claiming Star Scientific Inc. misled investors.
The U.S. District Court judge in Richmond on Tuesday granted a motion to stay discovery until the government completes its case against former Virginia Gov. Bob McDonnell and his wife.
The Richmond Times-Dispatch reports (http://bit.ly/1fwb3Hj ) that federal prosecutors argued that the indictment against the McDonnells is based in part on the same facts and alleges similar conduct as those in the lawsuit.
The suit accuses former Star Scientific executives of misleading the company’s stockholders.
The McDonnells were indicted last week after a lengthy federal investigation of his relationship with the dietary supplement maker’s former CEO.
Federal prosecutors allege that the McDonnells accepted loans and gifts in exchange for helping promote the company’s products.
Information from: Richmond Times-Dispatch, http://www.timesdispatch.com
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