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SEC stuns Stinger with suit
By SCOTT BARANCIK, Times Staff Writer
Published January 30, 2008
For years, skeptics have accused Tampa stun-gun maker Stinger Systems of pumping up its stock price with dubious claims. Now federal securities regulators are signaling their agreement. A Securities and Exchange Commission lawsuit filed Monday by the agency's Atlanta division claims Stinger issued a series of false statements around the time it went public in November 2004. The alleged hype helped quadruple Stinger's stock price on its first day of trading, boosting it to a high of $48.55 within two months, a nearly 40-fold increase from the IPO price of $1.25. On Tuesday, the already-depressed company's stock plummeted 59 percent to close at 59 cents per share. In a statement, Stinger Systems said it is "optimistic that it will prevail" in court. CEO Robert Gruder denied any wrongdoing. "I do not believe I committed securities fraud," he said. "In fact, I have invested approximately $1.5-million of my own money to keep Stinger Systems going through tough times." The SEC wants Gruder removed as an officer and director of Stinger, barred from similar positions at other public companies, and fined an unspecified sum.
[Last modified January 29, 2008, 22:49:06]
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