Rock Creek Pharmaceuticals

Rock Creek Pharmaceuticals (RCP)

RCP was formerly known as Star Scientific. Star Scientific was the dietary supplement company that was implicated in the Department of Justice case against Robert McDonnell when he was the Governor of the Commonwealth of Virginia.[1] In April 2013, FBI investigators began examining claims that the CEO of Star Scientific, Jonnie Williams Sr., had offered gifts and cash to Governor McDonnell in exchange for promoting Anatabloc, the dietary supplement made and sold by the company. Prior to the investigation of McDonnell, there was an investigation of securities transactions involving Jonnie Williams Sr. and during that investigation of Williams, McDonnell and his family were implicated by Williams. Williams, who lived in Virginia, donated over $120,000 to McDonnell's political action committee. Williams also allowed McDonnell and his family access to his (Williams') lake house home and other assets including his AstonMartin sports car.

During the subsequent legal case against McDonnell, Williams had immunity against criminal prosecution. The Company, (and the Directors) were however, named in a class action lawsuit which although it did not focus on the activities of Williams and McDonnell directly, did focus on other aspects of Williams' promotion of Anatabloc particularly its claims about the role of Johns Hopkins professors in some of its studies with Anatabloc. The class action suit and a Derivative case were settled at considerable expense[2] to Rock Creek after Williams and the original board had resigned. Williams' legal costs in the McDonnell case were also paid for by the Company, as were those of his secretary. The high legal costs generated by Williams as CEO of Star Scientific were subsequently borne by Rock Creek Pharmaceuticals when Williams and the Star Scientific board resigned.

On September 27, 2016, Rock Creek filed for chapter 7 bankruptcy in Delaware apparently being unable to overcome the legacy legal costs of Star Scientific's defense of the previous board and CEO, Jonnie Williams.[3][4]

Anatabloc/Anatabine

Star Scientific sold anatabine citrate as a dietary supplement but following the FDA warning letter and the transition to new management and board, RCP began developing the compound as a drug. This included the completion of a phase I clinical trial in the United Kingdom.[5]

References

  1. ↑ https://ballotpedia.org/Former_Virginia_Governor_Bob_McDonnell_and_the_Star_Scientific_controversy
  2. ↑ http://www.americanlawyer.com/home/id=1202769200666?slreturn=20160911103239
  3. ↑ http://www.biospace.com/News/with-a-history-of-political-corruption-rock-creek/434072/source=TopBreaking
  4. ↑ http://www.americanlawyer.com/home/id=1202769200666?slreturn=20160911103239
  5. ↑ http://www.prnewswire.com/news-releases/rock-creek-pharmaceuticals-provides-clinical-update-and-announces-2016-first-quarter-results-300269203.html
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