SOURCE: Izard Nobel LLP

August 13, 2009 19:57 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Sturm Ruger & Company, Inc.

WEST HARTFORD, CT--(Marketwire - August 13, 2009) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Connecticut on behalf of those who purchased the common stock of Sturm Ruger & Company, Inc. ("Sturm Ruger" or the "Company") (NYSE: RGR) between April 23, 2007 and October 29, 2007, inclusive (the "Class Period").

The Complaint charges that Sturm Ruger and certain of its officers and directors violated federal securities laws by issuing materially false statements about the Company's revenues and earnings. Specifically, defendants misrepresented and/or failed to disclose the following: (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 concerning Sturm Ruger's current financial performance and condition.

On October 24, 2007, 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. On this news, Sturm Ruger's common stock fell $6.45 per share to close at $10.65 per share.

If you are a member of the class, you may, no later than October 12, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit:, or contact Izard Nobel LLP toll-free: (800) 797-5499, or by e-mail: For more information about class action cases in general, please visit our website:

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