SOURCE: Brower Piven, A Professional Corporation

August 20, 2009 14:09 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $200,000 From Investment in Sturm, Ruger & Company, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the October 13, 2009 Lead Plaintiff Deadline

BALTIMORE, MD--(Marketwire - August 20, 2009) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the District of Connecticut on behalf of purchasers of the common stock of Sturm, Ruger & Company, Inc. ("Sturm Ruger" or the "Company") (NYSE: RGR) during the period between April 23, 2007 and October 29, 2007, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than October 13, 2009, and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period 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; 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; that orders received from the Company's independent distributors were artificially boosted by the Company's mandated change to firm and non-cancellable purchase order submissions and were not reflective of actual demand for the Company's products; 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 that as a result of the foregoing, defendants had no reasonable basis for their positive statements and opinions concerning Sturm Ruger's current financial performance and condition. According to the complaint, after the Company revealed on October 24, 2007 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, the value of Sturm Ruger's stock declined significantly.

If you have suffered a net loss for all transactions in Sturm, Ruger & Company, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Baltimore, Maryland
    410/986-0036
    Email Contact