NEW YORK, Jan. 21 2005 – LAWFUEL – The Law News Network – Wolf Popper LLP has filed a securities fraud lawsuit against TASER International, Inc. (“TASER”) (Nasdaq: TASR) and certain of its officers and directors, on behalf of all persons who purchased
TASER securities on the open market from October 19, 2004 through January 6,
2005. The action was filed in the United States District Court for the
District of Arizona. The complaint can be obtained from the Court or viewed
on Wolf Popper’s website (http://www.wolfpopper.com).
The complaint alleges that during the Class Period, defendants caused
TASER to issue numerous press releases touting the Company’s financial
performance and increasing demand for its devices, as well as the positive
results of studies conducted regarding the safety of the Company’s products.
However, unbeknownst to the market and contrary to the Company’s public
statements, TASER failed to disclose: (i) that the studies conducted on the
Company’s TASER devices were inconclusive as to the safety of the devices;
(ii) that the Company’s revenues and earnings would be negatively impacted
once the truth of these studies became known; (iii) that the late fourth
quarter orders of TASER devices the Company received from at least two of its
distributors were done to help the Company meet its sales goals for the
quarter and were not indicative of the true demand for the Company’s products;
and (iv) as a result, Defendants had no reasonable basis for their positive
statements regarding the safety of, and demand for, the Company’s products.
Defendants’ misrepresentations were revealed after the markets closed on
January 6, 2005, when the Company disclosed that it had received an informal
inquiry letter from the SEC regarding the Company’s statements about the
safety of its products and a recent order received from one of its
distributors.
As a result of the news, TASER shares plummeted nearly 18% to close at
$22.72 per share on extremely heavy volume of 35.7 million shares, as compared
to a closing price of $27.62 per share on volume of 7.5 million just the
previous day. On January 8, 2005, The New York Times published an article
which reported that the Arizona attorney general’s office met with TASER
executives to discuss concerns about the safety of TASER’s stun guns and the
Company’s plans to sell them to civilians. The article also aroused suspicion
as to the reasons for, and timing of, certain transactions, which appear to
have been an attempt to increase 2004 sales before the end of the quarter.
As a result of the news, on January 10, 2005, the next trading day, TASER
shares dropped an additional 12% to close at $20.05 on heavy volume of 23.6
million shares. The stock price continued to plummet to close at $14.10 on
extremely heavy volume of 64.7 million shares on January 11, 2005 for a total
stock decrease of $13.52 or approximately 49% since the January 6, 2005
disclosure.
Wolf Popper LLP has extensive experience representing shareholders in
class actions and has successfully recovered billions of dollars for defrauded
investors and shareholders.
Class members who desire to be appointed a lead plaintiff in this action
must file a motion with the Court no later than March 11, 2005. Class
members who are interested in serving as a lead plaintiff in this action, or
other persons who have questions or information regarding the prosecution of
this action, are urged to call or write:
