LOS ANGELES, Feb. 8, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the District of Minnesota on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of Gander Mountain Company ("Gander Mountain" or the "Company") (Nasdaq:GMTN) between April 20, 2004 and January 13, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Gander Mountain and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning Gander Mountain's financial performance and prospects artificially inflated the Company's stock price, inflicting damages on investors. Gander Mountain is a specialty retailer offering merchandise that caters to outdoor lifestyle enthusiasts, with a particular focus on hunting, fishing and camping. The Complaint alleges that prior to going public (and even afterward) Gander Mountain was controlled by the Erickson family (including certain of the defendants named in the complaint) through their individual ownership in the Company as well as their holdings in the Company's major shareholders. Defendants knew that unless the Company went public, their shares in the Company would remain illiquid, and virtually worthless. Further, defendants knew that unless the Company went public prior to revelations of lowered earnings expectations in November 2004 and January 2005, the Company would be prevented from going public altogether, jeopardizing defendants' ability to infuse value and liquidity into their shares via the IPO, as well as the Company's ability to repay a $9.8 million debt owed to a Erickson-family owned company.
The Complaint alleges that each of the defendants knew, but concealed from the public during the Class Period, that: (a) the Company's co-branded credit card program was faltering; (b) the value of the Company's inventory was overstated, requiring massive reductions and causing the Company's future margins to be negatively impacted as a result; (c) the Company's debt capacity was jeopardized and was inconsistent with the defendants' own growth plans; (d) the Company was actually experiencing average trends with respect to its sales; and (e) as a result of the above, defendants' own projections of positive comparable sales growth of 3% - 5% and pretax income of $8-$13 million were materially false and misleading.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than March 29, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca