A shareholder class-action lawsuit filed against Vista Outdoor hit the PR wires on Jan. 26. It was filed by Kessler Topaz Meltzer & Check, LLP, “…on behalf of purchasers of the Company’s securities between August 11, 2016 and January 13, 2017, inclusive (the ‘Class Period’).”
The complaint alleges the company failed to report softer sales, increased marketing costs and decreased margin, among other things. The law firm’s web page dedicated to the action has full details.
Vista Outdoor Suit Timing
The Vista Outdoor suit began long before the company announced layoffs at its Federal Premium plant. Plans for expansion at that facility, however, continue. That fact could indicate the employees will be back soon.
The news finds its way into the industry at a time when it’s adjusting to a “new norm,” and prices/deals for consumers are plentiful. March’s NICS background checks are the third highest for the month on record. The same was true for January and February. The oft-cited record-setting periods came during or directly after elections.
Vista Outdoor is publicly traded on Wall Street under the ticker VSTO, and is therefore directly exposed to this kind of legal action. The suit only affects stock purchasers during a short 6-month period—three of them during inflated election-cycle sales—if the plaintiffs prevail.
Brands under the firm’s umbrella include firearm legends Bushnell, Weaver, Simmons, Millett, Tasco, RCBS, BlackHawk, Federal Premium and more. The company has, however, expanded into new outdoor-related ventures. Camp Chef, for example, is a staple among campers and everyone knows the CamelBak name. Others include Bell (helmets), Giro (bicycling), and Krash (“The Greatest Helmets on Earth”). Raskullz, another safety-helmet property of Vista Outdoor, is designed for children as young as 18 months.
Despite the company’s diversification, the allegations focus on the firearm divisions in the suit.