OK Firefighters Pension v. Smith & Wesson Holding Corp., No. 11-1436 (1st Cir. 2012)Annotate this Case
A class representing purchasers of securities sued the company and two high-ranking officers, alleging that the company issued false or misleading public statements about demand for its products in violation of the Securities Exchange Act of 1934, 15 U.S.C. 78j(b), and related regulations. The district court granted summary judgment to the company. The First Circuit affirmed. Once a downward trend became clear, the company explicitly acknowledged that its forecasts had been undermined. Whether it was negligent to have remained too sanguine earlier, there was no evidence of anything close to fraud.
The court issued a subsequent related opinion or order on March 15, 2012.