| Company: | Gander Mountain Company |
| Ticker Symbol: | NASD: GMNT |
| Class Period: | April 20, 2004 to January 13, 2005 |
| Date Filed: | Feb-03-05 |
| Lead Plaintiff Deadline: | Mar-29-05 |
| Court: | District, MN |
| Allegations: |
A class action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of all securities purchasers of Gander Mountain Company ("Gander Mountain" or the "Company") from April 20, 2004 through January 13, 2005, inclusive (the "Class Period").
The complaint charges Gander Mountain, Mark R. Baker, Dennis M. Lindahl, Gerald A. Erickson, Donovan A. Erickson, Neal D. Erickson, Richard A. Erickson, Marjorie J. Pihl and Ronald A. Erickson, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and Sections 11 and 15 of Securities Act of 1933. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's co-branded credit card promotions were ineffective; (2) that the Company's inventory was overstated, which forced Gander Mountain to offer 40 to 60 percent discounts in order to move its merchandise; (3) that the Company was funding its overly aggressive expansion by borrowing above its revolving credit line; (4) that the Company had difficulties establishing a specific direction for it merchandise, by continuously changing the products and services offered to customers, thereby failing to establish continuity; (5) the Company's same store sales were in the negative; and (6) and that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and prospects.
On November 9, 2004, the Company lowered its outlook for pretax income for fiscal 2004 to a range of $8 million to $13 million, compared with the company's prior guidance of $16 million to $21 million. The news shocked the market. Shares of Gander fell $4.64 per share, or 25.01 percent, on November 9, 2004, to close at $13.91 per share. On January 14, 2005, before the markets opened, Gander Mountain lowered its outlook for pretax income for fiscal 2004 to a range of $2.0 million to $4.0 million, compared with the company's prior guidance of $8 million to $13 million. On this news shares of Gander Mountain fell $1.86 per share, or 16.47 percent, on January 14, 2005, to close at $9.43 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges Gander Mountain, Mark R. Baker, Dennis M. Lindahl, Gerald A. Erickson, Donovan A. Erickson, Neal D. Erickson, Richard A. Erickson, Marjorie J. Pihl and Ronald A. Erickson, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder and Sections 11 and 15 of Securities Act of 1933. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's co-branded credit card promotions were ineffective; (2) that the Company's inventory was overstated, which forced Gander Mountain to offer 40 to 60 percent discounts in order to move its merchandise; (3) that the Company was funding its overly aggressive expansion by borrowing above its revolving credit line; (4) that the Company had difficulties establishing a specific direction for it merchandise, by continuously changing the products and services offered to customers, thereby failing to establish continuity; (5) the Company's same store sales were in the negative; and (6) and that as a consequence of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company's growth and prospects.
On November 9, 2004, the Company lowered its outlook for pretax income for fiscal 2004 to a range of $8 million to $13 million, compared with the company's prior guidance of $16 million to $21 million. The news shocked the market. Shares of Gander fell $4.64 per share, or 25.01 percent, on November 9, 2004, to close at $13.91 per share. On January 14, 2005, before the markets opened, Gander Mountain lowered its outlook for pretax income for fiscal 2004 to a range of $2.0 million to $4.0 million, compared with the company's prior guidance of $8 million to $13 million. On this news shares of Gander Mountain fell $1.86 per share, or 16.47 percent, on January 14, 2005, to close at $9.43 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
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