SOURCE: Kendall Law Group

Kendall Law Group

August 14, 2009 14:19 ET

Kendall Law Group Announces Securities Class Action Against Sturm, Ruger & Company, Inc.

DALLAS, TX--(Marketwire - August 14, 2009) - Kendall Law Group, led by a former federal judge and former US Attorney, today announced that a lawsuit has been filed against Sturm, Ruger & Company, Inc. (NYSE: RGR) for securities violations related to public statements made by the company between April 23, 2007 and October 29, 2007.

Any shareholder, who purchased Sturm Ruger during the above time period, may move the Court to serve as a plaintiff in this class action. If you wish to serve as lead plaintiff, you must move the Court for appointment by October 13, 2009. A lead plaintiff is a class member who 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. If you wish to learn more about your rights as a shareholder or serving as a lead plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

According to the complaint, filed in the District of Connecticut, Sturm Ruger and certain officers and directors made positive statements about the Company's revenues and earnings that were false and misleading, failing to disclose that reductions in inventory balances by Sturm Ruger in the two quarters of 2007 had reduced the Company's parts and components inventories below efficient levels, preventing their manufacturing units from meeting production and shipment schedules. This resulted in the Company's inability to sustain current or history sales levels. Due to inventory shortages caused the failure to meet production and shipping schedules, Sturm Ruger's "backlog" of unfilled purchase orders was materially inflated. Orders received by the Company's independent distributers were artificially boosted by the mandated change to firm and noncancellable purchase order submissions and did not relict the actual demand for products. Independent distributors were carrying large quantities of unsold products, increasing the risk that these distributors would reduce their future purchases. Based on these facts, Sturm Ruger had no reasonable basis for their positive statements and opinions concerning their current financial performance and condition.

On October 24, 2007, the Company announced that its firearm sales for the third quarter of 2007 fell by 25%, resulting in a loss of $0.03 per share. They also indicated that sales had declined due to inventory issues at its distributors. Following this news, the price of Sturm Ruger's common stock fell by 37%, dropping $6.45 per share and closing at $10.65 per share on volume of 4.1 million shares.

Although every case is different, Kendall Law Group has participated in the recovery of over $800 million for defrauded shareholders. Led by a former federal judge and former U.S. Attorney, the firm has the credentials to pursue any type of complex securities litigation in the nation. If you wish to learn more about your rights as a shareholder or serving as a lead plaintiff, contact attorney Hamilton Lindley at 877-744-3728 or hlindley@kendalllawgroup.com.

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