ATLANTA (CN) - Stinger Systems and its CEO Robert Gruder defrauded the market and drove Stinger share price from $1.25 to $48.55 by misrepresenting Stinger's "flagship stun gun product," the SEC claims in Federal Court. Stinger and Gruder falsely claimed that the Bureau of Alcohol, Tobacco and Firearms had certified the gun; that Stinger shares would trade on the NASDAQ, rather than the Pink Sheets; and that the gun was "ready for sale and distribution" though it was not even ready for production, the SEC says. See complaint.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.