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Case Status:    SETTLED
On or around 08/22/2012 (Date of order of final judgment)

Filing Date: August 13, 2009

The complaint alleges that, during the Class Period, defendants made positive statements about the Company’s revenues and earnings. As alleged in the complaint, these statements were materially false and misleading because defendants misrepresented and/or failed to disclose the following adverse facts, among others: (i) that the reductions in inventory balances by Sturm Ruger in the first and second quarters of 2007 had reduced the Company’s parts and components inventories below efficient levels, preventing Sturm Ruger’s manufacturing units from meeting production and shipment schedules and resulting in the Company’s inability to sustain current or historical sales levels; (ii) that Sturm Ruger’s “backlog” of unfilled purchase orders was materially inflated because of the Company’s inability to meet current production and shipping schedules due to inventory shortages; (iii) that orders received from the Company’s independent distributors were artificially boosted by the Company’s mandated change to firm and noncancellable purchase order submissions and were not reflective of actual demand for the Company’s products; (iv) that Sturm Ruger’s independent distributors were carrying large quantities of the Company’s unsold products, increasing the risk that these distributors would reduce or curtail their future purchases; and (v) that based on the above, defendants had no reasonable basis for their positive statements and opinions concerning Sturm Ruger’s current financial performance and condition.

The truth came out on October 24, 2007, when the Company announced that its firearm sales for the third quarter of 2007 fell 26%, resulting in a loss of $0.03 per share, and that sales had declined due to inventory issues at its distributors. Following this news, the price of Sturm Ruger’s common stock fell by $6.45 per share, closing at $10.65 per share– a one-day decline of more than 37% on volume of 4.1 million shares.

On January 13, 2010, an order of consolidation and appointment of lead plaintiff and lead counsel was approved by the Court.

On March 11, 2010, an amended consolidated complaint was filed with the Court by the lead plaintiffs against the defendants.

On February 02, 2011, a ruling was issued by the Court denying the defendants motion to dismiss.

On May 31, 2012, the Court issued an Order granting the motion for preliminary approval of Settlement. On August 20, 2012, the Court issued an Order approving the class action settlement, plan of allocation, class certification, and awarding of attorneys' fees and expenses.

On August 20, 2012, the Court issued a Final Judgment and Order of Dismissal with Prejudice.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Recreational Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RGR
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Connecticut
DOCKET #: 09-CV-01293
JUDGE: Hon. Christopher F. Droney
DATE FILED: 08/13/2009
CLASS PERIOD START: 04/23/2007
CLASS PERIOD END: 10/29/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
  2. Diserio Martin O'Connor & Castiglioni LLP
    1 Atlantic Street, Diserio Martin O'Connor & Castiglioni LLP, CT 06901
    203.358.0800 203.348.2321 ·
No Document Title Filing Date
COURT: D. Connecticut
DOCKET #: 09-CV-01293
JUDGE: Hon. Christopher F. Droney
DATE FILED: 03/11/2010
CLASS PERIOD START: 04/23/2007
CLASS PERIOD END: 10/24/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@csgrr.com/
No Document Title Filing Date
No Document Title Filing Date