BOSTON, Jan. 13, 2005 (PRIMEZONE) -- An investor has sued Taser International, Inc. ("Taser" or the "Company") (Nasdaq:TASR), claiming that the manufacturer of less-lethal weapons misled investors about the demand for and the safety of its products.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action on January 12, 2005 in the U.S. District Court for the District of Arizona. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Taser common stock during the period of October 18, 2004 through and including January 6, 2005 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Taser-Cplt.pdf.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
The complaint names as defendants: Taser; Dr. Phillips W. Smith, who at all relevant times served as Taser's Chairman; Patrick (Rick) W. Smith, who was at all relevant times the Company's Chief Executive Officer and Director; Thomas P. Smith, who at all relevant times served as President and Director; and Daniel Behrendt, who was at all relevant times the Company's Chief Financial Officer.
According to the complaint, Defendants claimed increasing demand for Taser products and touted their safety throughout the Class Period. The Company repeatedly stated that its products were not the primary cause of death of people captured by the use of its products. Taser referred to a Department of Defense ("DoD") study conducted by the Human Effects Center of Excellence, which it claimed concluded that its products were generally effective without significant risk of unintended results.
In reality, however, Taser knew at the time they made these statements that studies conducted on the Company's products raised reservations as to the products' safety, the lawsuit says. Taser allegedly knew that the DoD study was inconclusive and that further research needed to be done to determine the safety of the Company's products. Taser also knew that sales of its products were slowing as a result of the questions concerning its products' safety.
On January 6, 2005, after the markets closed, Taser stunned the public when it announced that it had received an informal inquiry letter from the SEC regarding the Company's statements about the safety of its products and a $1.5 million order of Taser devices received from one of the Company's distributors, which was booked in late December 2004.
As a result of the announcement, shares of the Company's common stock fell $4.90, or 18%, to close at $22.72 per share.
Then, on January 11, 2005, Taser further shocked investors when it announced that orders for the first half of 2005 might be delayed while law enforcement agencies test competitors' products. On this news, shares of the Company's common stock fell an additional $5.95, or 30%, to close at $14.10 per share.
If you purchased Taser common stock from October 18, 2004 through and including January 6, 2005 you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Colleen M. Conners, Esq.
Leslie R. Stern, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than March 11, 2005. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=533 . Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca