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Smith & Wesson Holding Corporation Summary: According to a law firm press release dated December 13, 2007 a class action has been commenced in the United States District Court for the District of Massachusetts on behalf of purchasers of Smith & Wesson Holding Corporation.
The complaint charges Smith & Wesson and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Smith & Wesson, through its subsidiary, Smith & Wesson Corp., manufactures handguns in the United States. The company produces firearms, including revolvers, black powder fire arms, pistols, rifles, and handcuffs.
The complaint alleges that, during the Class Period, defendants issued statements concerning the Company's performance and prospects. As alleged in the Complain, these statements were materially false and misleading because they failed to disclose and misrepresented the following material adverse facts which were known to Defendants or recklessly disregarded by them: (i) that the market for various lines of the Company' s gun products was saturated with inventory which was causing customers to reduce orders and postpone purchases; (ii) that the Company' s reported sales figures did not represent true growth for the Company' s products but rather were simply inventory stocking transactions and as customer inventory levels increased, the Company' s sales would suffer; and (iii) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its earnings and prospects.
On October 29, 2007, Smith & Wesson issued a press release announcing its preliminary second quarter financial results for the period ending October 31, 2007. Among other things, the Company reduced its earnings guidance for fiscal 2008 to $23.5 million, or $0.53 per share, as compared to $28.5 million, or $0.63 per share. In response to this announcement, the price of Smith & Wesson common stock plummeted from $20.09 per share to $12.12 per share on extremely heavy trading volume. Then, on December 6, 2007, Smith & Wesson issued a press release announcing its financial results for its second fiscal quarter, the period ending October 31, 2007. The Company again reduced its outlook for 2008 to $0.40 per share. In response to this announcement, on December 7, 2007, the price of Smith & Wesson common stock plummeted from $9.92 per share to $7.08 per share on extremely heavy trading volume.
INDUSTRY CLASSIFICATION:
SIC Code: 3480
Sector: Capital Goods
Industry: Aerospace & Defense
| COMPANY/ISSUER NAME: | Smith & Wesson Holding Corporation |
| COMPANY/ISSUER TICKER: | SWHC |
| COMPANY WEBSITE: | http://www.smith-wesson.com |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| William Hwang, et al. v. Smith & Wesson Holding Corporation, et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint For Violations Of Federal Securities Laws | |||
| Type: Complaint | Date on the document: 12/13/2007 | ||
| OTHER DOCUMENTS | |||
| Class Action Complaint - Jury Trial Demanded | |||
| Case Name and/or Number: Joanna Trudelle, et al. v. Smith & Wesson Holding Corporation, et al. | |||
| Type: Complaint | Date on the document: 01/09/2008 | ||
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