A class action complaint has been filed in the United States District Court for the District of Utah against Vista Outdoor and certain officers and directors on behalf of persons or entities that acquired Vista Outdoor's securities between August 11, 2016 and January 13, 2017, inclusive (the "Class") alleging violations of the Securities Exchange Act of 1934 ("Exchange Act").
The complaint alleges that on January 11, 2017, Vista Outdoor issued a press release entitled "Vista Outdoor Announces Expected Non-Cash Intangible Asset Impairment Charge." In the January 11 press release, Vista Outdoor announced that it expects to record a material asset impairment charge (approximately $400 - $450 million) in the third quarter of its Fiscal Year 2017 for its Hunting and Shooting Accessories reporting unit during the 2017 fiscal year third quarter.
The complaint alleges that on this news, shares of Vista Outdoor's stock fell $8.21 per share, or 21.7%, to close at $29.58 per share on January 12, 2017 on usually heavy trading volume.
The complaint alleges, among other things, that the defendants violated Sections 10(b) and 20(a) of the Exchange Act throughout the Class Period by making materially false and/or misleading statements, as well as failing to disclose that (1) Vista Outdoor was experiencing an acceleration in the softening of the retail environment and an acceleration in its own promotional activity, (2) Vista Outdoor was experiencing both revenue and gross margin declines, (3) as a result of the foregoing, the Company would have to begin the impairment assessment for its Outdoor Products segment's reporting units in the third quarter of 2017, rather than with the preparation of the Company's fiscal year 2017 annual financial statements, and (4) as a result, the Company would have to recognize an impairment charge in the range of $400 million to $450 million.
If you are a member of the proposed Class, you may move the court no later than March 27, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Matthew P. McCahill
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP