Taser Confirms Federal Inquiry, Stock Price Drops


On the same day Taser International confirmed that federal regulators are investigating the company, Arizona’s attorney general said the stun gun manufacturer has agreed to change the way it markets its gun, reports the Arizona Republic. Attorney General Terry Goddard’s office said Taser has offered to increase product warnings, change some of its broad claims of safety, and limit the use of the word “non-lethal.” “Our primary concern has been Taser’s safety claims that we felt may have understated the risks of serious harm,” Goddard said.

Scottsdale, Az.-based Taser has armed nearly a fifth of America’s law enforcement agencies with the electric stun guns. Goddard has been looking into Taser’s safety claims since January, when the U.S. Securities and Exchange Commission said it was launching an informal inquiry into the issue and into a sale last year that bolstered company earnings at the end of the quarter. Yesterday, Taser disclosed that the SEC had turned its informal inquiry into an investigation that will give federal regulators subpoena powers. The disclosure had an immediate impact on Taser stocks, sending the price of shares to their lowest level since November 2003.

Link: http://www.azcentral.com/business/articles/0928taser28.html

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