HARTFORD, Conn., Dec. 13, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., 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 Massachusetts on behalf of all persons who purchased the common stock of Smith & Wesson Holding Corp. ("Smith & Wesson" or the "Company") (Nasdaq:SWHC) between June 15, 2007 and December 6, 2007 (the "Class Period").
The Complaint charges that Smith & Wesson and certain of its officers and directors violated federal securities laws. Specifically, during the Class Period, defendants failed to disclose and misrepresented the following: (i) that the market for various lines of the Company's gun products was saturated with inventory which was causing customers to reduce orders and postpone purchases; and (ii) that the Company's reported sales figures did not represent true growth for the Company's products but rather were simply inventory stocking transactions and as customer inventory levels increased, the Company's sales would suffer.
On October 29, 2007, Smith & Wesson issued a press release announcing its preliminary second quarter financial results for the period ending October 31, 2007. Among other things, the Company reduced its earnings guidance for fiscal 2008 to $23.5 million, or $0.53 per share, as compared to $28.5 million, or $0.63 per share. In response to this announcement, the price of Smith & Wesson common stock plummeted from $20.09 per share to $12.12 per share. Then, on December 6, 2007, Smith & Wesson issued a press release announcing its financial results for its second fiscal quarter and again reduced its outlook for 2008 to $0.40 per share. On this news, on December 7, 2007, the price of Smith & Wesson stock fell from $9.92 per share to $7.08 per share.
If you are a member of the class, you may, no later than February 11, 2008, 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, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. 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, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.