SOURCE: Shalov Stone Bonner & Rocco LLP

Shalov Stone Bonner & Rocco LLP

August 17, 2009 14:00 ET

Shalov Stone Bonner & Rocco LLP Announces Class Action Against Sturm, Ruger & Company, Inc.

NEW YORK, NY--(Marketwire - August 17, 2009) - Shalov Stone Bonner & Rocco LLP announces that a class action lawsuit was filed on behalf of purchasers of Sturm, Ruger & Company, Inc. ("RGR" or the "Company") (NYSE: RGR) common stock between April 23, 2007 and October 29, 2007, inclusive, (the "Class Period"). The lawsuit is pending in the United States District Court for the District of Connecticut.

The complaint alleges that, throughout the Class Period, defendants misrepresented or failed to disclose that: (1) the reductions in inventory balances by RGR in the first and second quarters of 2007 had reduced its parts and components inventories below efficient levels, preventing it from meeting production and shipment schedules, and resulting in its inability to sustain current or historical sales levels; (2) because of RGR's inability to meet current production and shipping schedules, its "backlog" of unfilled purchase orders was materially inflated; (3) orders received from RGR's independent distributors were artificially boosted by RGR's mandated change to firm and noncancellable purchase order submissions, and did not reflect actual demand for its products; (4) these independent distributors were carrying large quantities of unsold products, increasing the risk that they would reduce or curtail future purchases; and (5) based on the above, defendants did not have a reasonable basis for their positive statements and opinions concerning RGR's current financial performance and condition.

On October 24, 2007, RGR announced that its firearm sales for the third quarter of 2007 fell 26%, resulting in a loss of $0.03 per share, and that this decline in sales was attributable to inventory reductions. On this news, the price of RGR common stock fell more than 37%.

Shalov Stone Bonner & Rocco LLP has extensive experience in the prosecution of lawsuits on behalf of investors. For more information about the firm, please visit its website at:

If you purchased RGR stock and would like additional information about your rights, please contact investor rights attorney Amanda C. Scuder, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email:

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