SALT LAKE CITY - Clarus (NASDAQ:CLAR) Corporation (NASDAQ: CLAR), a global company specializing in outdoor enthusiast markets, has initiated legal action against Caption Management LLC and several associated parties, alleging improper stock transactions.
The lawsuit, filed today in the U.S. District Court for the Southern District of New York, seeks to recover profits made by the defendants from trading Clarus common stock in a manner that the company claims violates Section 16(b) of the Securities Exchange Act of 1934.
Section 16(b) targets the prevention of insider trading by requiring that any profits gained by beneficial owners who hold more than 10% of an issuer's securities, and others meeting certain criteria, from short-swing trading within a six-month period be returned to the issuer.
The defendants in the case include Caption Management LLC, Caption Partners II LP, Caption GP, LLC, and individuals William Cooper and Jason Strasser. Clarus alleges that these parties engaged in transactions that led to profits which should rightfully be disgorged under the specific regulations of Section 16(b).
Clarus Corporation, headquartered in Salt Lake City, Utah, is known for designing, developing, manufacturing, and distributing outdoor equipment and lifestyle products. The company's portfolio includes respected brands such as Black Diamond®, Rhino-Rack®, MAXTRAX®, TRED Outdoors®, and operates globally, selling through various channels including specialty retailers, online platforms, and directly through its own websites.
The legal complaint filed by Clarus can be accessed through the company's website, where they maintain a section for legal filings. This lawsuit represents a significant legal step by Clarus to protect its interests and ensure compliance with securities law.
The information regarding this legal action is based on a press release statement issued by Clarus Corporation. The company has not provided further details on the expected outcomes of the lawsuit or the specific amounts of profits involved. As with all legal matters, the outcome of this case is uncertain and will be determined through the judicial process.
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