Clarus Reports Status of HAP Trading Short-Swing Profit Litigation
SALT LAKE CITY, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”), a global company focused on the outdoor and consumer enthusiast markets, reported on the status of its claims against HAP Trading, LLC and Mr. Harsh A. Padia (collectively “HAP Trading”).
On November 20, 2023, Clarus submitted its expert’s report calculating the recovery that may be available to Clarus from HAP Trading’s purchases and sales of Clarus common stock in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended. Clarus engaged Charles Lundelius, a Managing Director with Berkeley Research Group, LLC (“BRG”) (https://www.thinkbrg.com/people/charles-lundelius/) to conduct a comprehensive review of HAP Trading’s transactions in shares of Clarus’ common stock during the period July 19, 2022 to September 23, 2022. The Lundelius report reflects a potential recovery of $46,157,732. Rebuttal reports from HAP Trading’s expert are due by December 22, 2023, and thereafter, other court mandated timelines include the deadline for expert discovery on January 19, 2024 and a joint status letter to the court on January 26, 2024. HAP Trading has also submitted expert reports claiming market making and arbitrage exemptions from the requirements of Section 16(b), which Clarus and Lundelius have concluded are not applicable in the current context. However, there can be no assurance that all or any of the amount indicated in the Lundelius report will be recovered by Clarus.
Clarus believes that each of Caption Management, LLC and Parallax Master Fund, L.P. may also have violated Section 16(b), and is continuing its investigation on potential claims against them.
About Clarus Corporation
Headquartered in Salt Lake City, Utah, Clarus Corporation is a global leading designer, developer, manufacturer and distributor of best-in-class outdoor equipment and lifestyle products focused on the outdoor and consumer enthusiast markets. Our mission is to identify, acquire and grow outdoor “super fan” brands through our unique “innovate and accelerate” strategy. We define a “super fan” brand as a brand that creates the world’s pre-eminent, performance-defining product that the best-in-class user cannot live without. Each of our brands has a long history of continuous product innovation for core and everyday users alike. The Company’s products are principally sold globally under the Black Diamond®, PIEPS®, Rhino-Rack®, MAXTRAX®, TRED Outdoors®, Sierra®, and Barnes® brand names through outdoor specialty and online retailers, our own websites, distributors, and original equipment manufacturers. Our portfolio of iconic brands is well-positioned for sustainable, long-term growth underpinned by powerful industry trends across the outdoor and adventure sport end markets. For additional information, please visit www.claruscorp.com or the brand websites at www.blackdiamondequipment.com, www.rhinorack.com, www.maxtrax.com.au, www.tredoutdoors.com, www.sierrabullets.com, www.barnesbullets.com, or www.pieps.com.
Forward-Looking Statements
Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release, include, but are not limited to, uncertainties associated with legal proceedings, the actual amount of any potential damages that will be recovered by the Company from Hap Trading, as well as the specific time frame for such recovery, and the ability of the Company to pursue potential claims against each of Caption Management, LLC and Parallax Master Fund, L.P., as well as risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the sections titled “Risk Factors” and “Forward-Looking Statements” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.
Company Contacts:
Michael J. Yates
Chief Financial Officer
Tel 1‐801-993‐1304
mike.yates@claruscorp.com
Investor Relations Contacts:
Gateway Group, Inc.
Cody Slach
Tel 1‐949‐574‐3860
CLAR@gateway-grp.com
Released December 6, 2023