NEW YORK - US regulators have stepped up and expanded their investigation into Taser International, the stun-gun maker said yesterday, sending its shares to a 22-month low.
The move by the US Securities and Exchange Commission puts further pressure on Taser, which faces criticism of the safety of its weaponsand a range of lawsuits from shareholders and families of Taser victims.
Taser's shares plunged 96USc, or 13 per cent on Nasdaq, closing at US$6.35, their lowest close, adjusted for stock splits, since late November 2003. The stock has fallen 80 per cent so far this year.
According to Taser, the SEC has escalated its probe to a formal investigation, allowing it to subpoena documents. The company also said the SEC was looking into the possible unauthorised acquisition of private information by individuals outside the company in an effort to manipulate Taser stock.
The escalation of the SEC's investigation comes as Taser faces continued criticism of its weapons, which disable victims with a 50,000-volt shock. Taser has faced a number of wrongful death suits from families of victims this year, though none has been successful.
Human rights group Amnesty International has logged more than 100 Taser-related deaths since 2001. Taser says its "non-lethal" weapons actually save lives when used by police officers as an alternative to guns.
