Sturm, Ruger & Company Shareholder Lawsuit Filed
May 31, 2012 (Update) -- Proposed $3 million settlement for those who purchased Sturm, Ruger & Company, Inc. common stock between April 23, 2007 through October 24, 2007, inclusive. Fairness hearing set for August 20, 2012.
According to the Notice:
Statement of Plaintiff Recovery
Pursuant to the Settlement described herein, a $3.0 million Settlement Fund is being provided. Lead Plaintiff estimates that there were approximately 12.9 million common shares of Sturm, Ruger common stock which may have been damaged during the Class Period. Lead Plaintiff estimates that the average recovery under the Settlement is roughly $0.23 per damaged share before deduction of any taxes on the income thereof, notice and administration costs, and the attorneys’ fee and expense award as determined by the Court. A Class Member’s actual recovery will be a proportion of the Net Settlement Fund
determined by that claimant’s Recognized Claim as compared to the total Recognized Claims submitted. An individual Class Member may receive more or less than this average amount depending on the number of claims submitted, when during the Class Period a Class Member purchased shares of Sturm, Ruger common stock, the purchase price paid, and whether those shares were held at the end of the Class Period or sold during the Class Period, and, if sold, when they were sold and the amount received. See Plan of Allocation as set forth at pages 6 and 7 below for more information on your Recognized Claim.
August 13, 2009 -- An investor in shares of Sturm, Ruger & Company (Public, NYSE:RGR) has filed a proposed securities class action lawsuit in the United States District Court for the District of Connecticut on behalf of purchasers of Sturm, Ruger & Company, Inc. (NYSE: RGR) common stock between April 23, 2007 and October 29, 2007 against Sturm, Ruger & Company and others over alleged Federal Securities Laws violations.
According to the complaint the plaintiff alleges that Sturm Ruger & Company, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between April 23, 2007 and October 29, 2007 statements about Sturm Ruger & Company’s revenues and earnings, that were allegedly materially false and misleading because defendants misrepresented and/or failed to disclose the specific adverse facts. Then on October 24, 2007, when Sturm Ruger & Company, Inc 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 & Company, Inc. (NYSE: RGR) 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, so the lawsuit.
Sturm, Ruger & Company, located in Southport, CT, is principally engaged in the design, manufacture and sale of firearms to domestic customers. Sturm, Ruger & Company’s design and manufacturing operations are located in the United States and substantially all product content is domestic. Sturm, Ruger & Company (Public, NYSE:RGR) reported in 2007 Total Revenue of $156.49million with a Net Income of $10.33million and in 2008 Total Revenue of $181.48million with a Net Income of $8.67million. Shares of Sturm, Ruger & Company (Public, NYSE:RGR) traded recently at $12.30 per share, down from a 52weekHigh of $15.20 per share and $20.37 per share in 2007.