RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Vista Outdoor Inc. (NYSE: VSTO) (“Vista” or the “Company”) on behalf of purchasers of the Company’s securities between August 11, 2016 and January 13, 2017, inclusive (the “Class Period”).
Vista shareholders who purchased securities during the Class Period may, no later than March 27, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/vista-outdoor-inc#join
Vista designs, manufactures and markets consumer products in the outdoor sports and recreation markets. Vista operates in two segments, Shooting Sports and Outdoor Products.
As detailed in the complaint, on January 11, 2017, Vista issued a press release entitled “Vista Outdoor Announces Expected Non-Cash Intangible Asset Impairment Charge.” Therein, Vista disclosed that it expected to record a material asset impairment charge in its Hunting and Shooting Accessories reporting unit in the third quarter of its fiscal year 2017 (“FY17”). Further, although Vista reported that it was still “in the process of finalizing the actual amount of the impairment, the Company’s preliminary analysis indicates the impairment charge will be in the range of $400 million to $450 million.” On this news, shares of the Company’s stock fell $8.21 per share, or 21.7%, to close on January 12, 2017 at $29.58 per share.
Then, on January 13, 2017, Vista disclosed that it had appointed a new President of its Outdoor Products segment. On this news, shares of the Company’s stock declined an additional $0.88 per share, or 3%, to close on January 13, 2017 at $28.70 per share.
The complaint alleges that, throughout the Class Period, the defendants failed to disclose: (1) that Vista was experiencing an acceleration in the softening of the retail environment and an acceleration in its own promotional activity; (2) that, as such, Vista was experiencing both revenue and gross margin declines; (3) that, 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 FY17 annual financial statements; and (4) that, as a result, the Company would have to recognize an impairment charge in the range of $400 million to $450 million. The complaint further alleges that, as a result of the foregoing, the defendants’ statements about Vista’s business, operations and prospects were false and misleading and/or lacked a reasonable basis.
Vista shareholders may, no later than March 27, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/vista-outdoor-inc#join
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.