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Smith & Wesson Holding Corporation Long Term Investor Files Lawsuit

  • If you are a current long term investor in Smith & Wesson Holding Corporation (NASDAQ:SWHC), including those who purchased SWHC shares as early as June 2007 or earlier and continue to presently hold those SWHC shares, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Smith & Wesson Holding Corporation
Security
NASDAQ: SWHC

Case Name
Smith & Wesson Holding Corporation Derivative Action 10/29/2010
Type of Lawsuit
Stockholder Derivative Action
Court of Filing
U.S. District Court for the District of Arizona

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Summary

FEBRUARY 2012 - An appeals court has rejected the claims of shareholders accusing Smith & Wesson of misrepresenting demand for its products.
An investor in SWHC shares filed a lawsuit in U.S. District Court against Smith and Wesson’s CEO, CFO and several directors alleging they made misleading statements about excess inventory and that some of them sold stock while prices were artificially inflated.

The recent lawsuit by SWHC investors against the Smith & Wesson Holding CEO, CFO and several directors follows two previously filed lawsuits in a different state against certain SWHC officers and directors. Those three lawsuits filed against certain officers and directors of Smith and Wesson Holding were filed after investors in SWHC, who purchased shares between June 2007 and December 2007, filed a lawsuit in the end of 2007 against Smith & Wesson Holding Corporation over alleged violations of the Securities Exchange Act of 1934.

The company came recently also under fire by an investigation by a law firm on behalf of current SWHC investors concerning potential breaches of fiduciary duties by the board of directors and other company executives in connection with U.S. Department of Justice investigations into potential violations of the Foreign Corrupt Practices Act (“FCPA”).

In an annual report filed on July 1, 2010, Smith & Wesson announced the Department of Justice investigation. On January 19, 2010, the Department of Justice unsealed indictments of 22 individuals from the firearm industry that alleged the defendants “conspired to pay bribes for supply contracts” to an undercover FBI agent posing as a representative of an African nation. Smith & Wesson confirmed that one of the defendants was their vice president of sales for their International & U.S. Law Enforcement division. Smith & Wesson acknowledged that it “could be prevented from bidding on domestic military and government contracts, and could risk debarment by the U.S. Department of State.”

Shares of Smith & Wesson Holding Corporation (SWHC) traded recently at $3.98 per share, down from its 52weekHigh of $6.98 per share and $21.38 per share in 2007.