The first sign of serious trouble for the company came in March 1882 when the Starr-Grove mine shut down due to lack of profit and increasing debt. The stock values of Clark & Bothwell's various mines immediately plunged and were soon unsaleable. The first of what was to be several lawsuits for investment money lost was brought in April 1882. The most damaging development came when one of the subsidiaries, the Stormont Mining Company, sued Clark & Bothwell for funds withheld from Stormont. It soon became apparent that Bothwell, as Treasurer, had mismanaged affairs at the company's New York office resulting in the firm's collapse. By May 1882, Bothwell was en route to San Francisco and was never heard from again. The scandal was national news and the resulting lawsuits played out in New York and New England newspapers.