NEW YORK, Jan. 12, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit in the United States District Court, District of Arizona, against TASER International, Inc. ("TASER" or the "Company") (Nasdaq:TASR) and certain of its officers and directors, on behalf of purchasers of the common stock of TASER during the period from August 10, 2004 to January 7, 2005, inclusive (the "Class Period").
TASER purports to develop, manufacture and market "non-lethal weapons" for use in the law enforcement, military, private security, and personal defense markets. The complaint alleges that during the Class Period, defendants knowingly or recklessly misrepresented the Company's prospects, financial results, and operations, causing the Company's stock price to trade at artificially inflated prices in violation of the Securities Exchange Act of 1934. Among other things, defendants made materially false and misleading statements regarding the safety of TASER's products, and reported inflated revenues.
The true facts, which were known to each of the defendants but concealed from the investing public, were that:(i) "independent" studies touted by defendants as confirming the safety of TASER's products in fact raised reservations; and (ii) the $1.5 million order of TASER devices from a distributor that was announced in the last days of the fourth quarter was orchestrated to help the Company meet analysts' estimates and create the illusion that the Company's stellar growth was continuing.
In the dead of night on January 6, 2005, defendants disclosed that the SEC had launched an inquiry into the safety of TASER's products and the $1.5 million order. The market reacted swiftly -- TASER's share price fell almost 20% from a Class Period high of $32.59 (adjusted for a two-for-one stock split) on December 30, 2004 to a closing price of $22.72 on January 7, 2005. On January 11, 2005, TASER revealed that some orders in the first half of 2005 may be delayed as customers test and evaluate competitors' products. The stock fell even further on this news. While plaintiff and other class members sustained massive losses, a number of the individual defendants profited from their misconduct. During the Class Period, insiders, including defendants, sold over $96 million worth of TASER common stock.
If you purchased the securities of TASER during the Class Period, you have until March 11, 2005 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Carolyn S. Moskowitz (csmoskowitz@pomlaw.com) or Teresa L. Webb (tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.