Clarus reports status of HAP Trading short-swing profit litigation

Clarus Corporation reported on the status of its claims against HAP Trading, LLC and Mr. Harsh A. Padia. 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, 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.