Shareholders Foundation, Inc.

Smith & Wesson Holding Corporation (SWHC) Investor Files Lawsuit over CEO Stock Award

A lawsuit was filed by a current investor in shares of Smith & Wesson Holding Corporation (NASDAQ:SWHC) over alleged breaches of fiduciary duties and current long-term NASDAQ:SWHC stockholders should contact the Shareholders Foundation.

 
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San Diego, CA -- (SBWIRE) -- 02/13/2013 -- An investor in shares of Smith & Wesson Holding Corporation (NASDAQ:SWHC) filed a lawsuit against certain directors of Smith & Wesson Holding Corporation over alleged breaches of fiduciary duties in connection with the stock options that have been awarded to the CEO.

Investors who are current long-term stockholders of shares of Smith & Wesson Holding Corporation (NASDAQ:SWHC), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The plaintiff alleges that defendants breached their fiduciary duties by awarding the CEO of Smith & Wesson Holding Corporation 500,000 stock options in the FY 2012. The plaintiff claims that the bylaws of Smith & Wesson Holding Corporation limit such grants to a maximum of 300,000 per year.

In fact, the compensation of certain top officials at Smith & Wesson Holding Corporation increased significantly between 2011 and 2012. For instance the President and CEO’s compensation rose from over $493,000 in 2011 to over $2.89 million in 2012 and the Executive VP, CFO and Treasurer’s pay increased from over $640,000 in 2011 to over $1.18 million in 2012.

Smith & Wesson Holding Corporation reported that its Total Revenue rose from $342.23 million for the 12 months period that ended on April 30, 2011 to $412.00 million for the 12 months period that ended on April 30, 2012 and that its Net Loss of $82.77 million for the 12 months period that ended on April 30, 2011 turned into a Net Income of $16.11 million for the 12 months period that ended on April 30, 2012.

Shares of Smith & Wesson Holding Corporation (NASDAQ:SWHC) grew from as low as $2.52 per share in September 2011 to as high as $11.015 per share in September 2012.

On Feb. 8, 2013, NASDAQ:SWHC shares closed at $9.21 per share.

Those who are current long-term stockholders of Smith & Wesson Holding Corporation (NASDAQ:SWHC) shares have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Joelle Day
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com