LanceOregon
Moderator
Lawyers acting on the behalf of investors in Smith & Wesson have announced an investigation into potential breaches of fiduciary duties by the board of directors and other company executives.
In January of this year, the US Justice Department arrested many gun industry officials in a sting operation. Those arrested were accused of “conspiring to pay bribes for supply contracts” to an undercover FBI agent posing as a representative of an African nation. These acts constitute potential violations of the Foreign Corrupt Practices Act (FCPA). One of the defendants in this pending case is Smith & Wesson's Vice President of sales for their International & U.S. Law Enforcement division.
A conviction in this crime has the potential of the Justice Department being able to bar Smith & Wesson from bidding on future US government law enforcement or military contracts. In addition, the US State Department could potentially bar Smith & Wesson from engaging in any foreign sales to governments as well.
If this were to happen, and Smith & Wesson stock were to plummet as a result, stockholders could then sue the Board of Directors and members of management for allowing these corrupt practices to take place. This is why this investigation has now been announced, to prepare for such a potential lawsuit, if the worst case should happen to Smith & Wesson.
What do you think? Would the US Justice Department really go after one of America's leading gun manufacturers in this manner? Or would fear of a political fallout prevent that?
Or could this whole FBI sting operation have been politically motivated in the first place, to make American gun makers look bad, and be able to harm them?
Sting operations have always bothered me to some degree, as I believe that they have some potential for abuse.
What do you think?
Here is a detailed report about this matter:
http://pr-usa.net/index.php?option=com_content&task=view&id=462454&Itemid=99999999
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In January of this year, the US Justice Department arrested many gun industry officials in a sting operation. Those arrested were accused of “conspiring to pay bribes for supply contracts” to an undercover FBI agent posing as a representative of an African nation. These acts constitute potential violations of the Foreign Corrupt Practices Act (FCPA). One of the defendants in this pending case is Smith & Wesson's Vice President of sales for their International & U.S. Law Enforcement division.
A conviction in this crime has the potential of the Justice Department being able to bar Smith & Wesson from bidding on future US government law enforcement or military contracts. In addition, the US State Department could potentially bar Smith & Wesson from engaging in any foreign sales to governments as well.
If this were to happen, and Smith & Wesson stock were to plummet as a result, stockholders could then sue the Board of Directors and members of management for allowing these corrupt practices to take place. This is why this investigation has now been announced, to prepare for such a potential lawsuit, if the worst case should happen to Smith & Wesson.
What do you think? Would the US Justice Department really go after one of America's leading gun manufacturers in this manner? Or would fear of a political fallout prevent that?
Or could this whole FBI sting operation have been politically motivated in the first place, to make American gun makers look bad, and be able to harm them?
Sting operations have always bothered me to some degree, as I believe that they have some potential for abuse.
What do you think?
Here is a detailed report about this matter:
http://pr-usa.net/index.php?option=com_content&task=view&id=462454&Itemid=99999999
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