S.E.C. Is Investigating Taser's Safety Claims

[RamboLiberal]

http://www.nytimes.com/aponline/business/AP-Stun-Gun-Probe.html?pagewanted=print&position=

Federal authorities have launched an inquiry into claims Taser International Inc. has made about safety studies for its stun guns. Its shares plunged more than 14 percent in morning trading Friday.

The Securities and Exchange Commission also is looking into a $1.5 million, end-of-year sale of stun guns by Taser International to a Prescott firearms distributor that some stock analysts have questioned because it appears to inflate sales to meet annual projections.

<snip>

Although Taser has repeatedly said its stun guns have never caused a death or serious injury, reports in The Arizona Republic have linked the stun gun to 11 deaths and to several injuries involving police officers.

<snip>

Some medical experts believe Taser shocks may exacerbate a risk of heart failure in cases where people are agitated, under the influence of drugs or have underlying health problems. Human rights advocates want law enforcement to stop using Tasers until scientific evidence can show they don't kill.

[htuttle]

1. Is the SEC investigating this because their stock is dropping?

Wouldn't someone like the FCC or FDA be more appropriate for product safety testing? Does the SEC have any testing labs? Right...

In that case, I'm going to predict right now that the SEC will find tasers to be completely safe, and the drop in their stock price unwarranted...

:eyes:

Wasn't it Bernie Kerik that owns a huge chunk of that company? Right...

[NYC]

2. This part suits the SEC:

...The Securities and Exchange Commission also is looking into a $1.5 million, end-of-year sale of stun guns by Taser International to a Prescott firearms distributor that some stock analysts have questioned because it appears to inflate sales to meet annual projections...

If those sales were intended to come back in January as returns, they were bogus sales.

[Kagemusha]

3. This isn't about safety testing.

Very little of which was done and only against pigs (which DU'ers complained about...)

It's about claiming that the Taser has never caused a significant injury. Ever. They base this on coroner reports which have never said that the Taser is the sole cause of death to anyone, for instance. (Duh, they prey on the pre-existing weak or the drugged up, we knew that already..)

[mcscajun]

4. NY Times must have screwed the headline.

They open the first paragraph: "Federal authorities have launched an inquiry into claims Taser International Inc. has made about safety studies for its stun guns."

It's in the second paragraph they first menttion the SEC, which has no business investigating safety claims. The other posters have pointed out who should be doing this.

I'm betting on a headline slip-up here, coupled with an editor half-asleep who cut critical information from the lead.

[Kagemusha]

5. It makes sense now actually...

The SEC is investigating whether Taser has FALSELY REPRESENTED its safety studies, not whether the safety studies themselves are inadequate.

Lots of sense now.

[mcscajun]

6. ah...that's what I get for not reading the whole article.

My error.

[Kagemusha]

7. I hadn't either :)

Thanks for mentioning the context.