| Company: | Smith & Wesson Holding Corp. |
| Ticker Symbol: | NASD: SWHC |
| Class Period: | June 15, 2007 to December 6, 2007 |
| Date Filed: | Jan-10-08 |
| Lead Plaintiff Deadline: | Feb-11-08 |
| Court: | District, MA |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the District of Massachusetts on behalf of purchasers of Smith & Wesson Holding Corp. ("Smith & Wesson" or "the Company") (NASDAQ: SWHC) securities during the period between June 15, 2007 and December 6, 2007 (the "Class Period").
The complaint alleges that, during the Class Period, defendants issued statements concerning the Company's performance and prospects. The complaint alleges that 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.
Smith & Wesson issued a press release on October 29, 2007 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.
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 alleges that, during the Class Period, defendants issued statements concerning the Company's performance and prospects. The complaint alleges that 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.
Smith & Wesson issued a press release on October 29, 2007 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.
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.
