Taser International stock dropped from $33 to $6 in 2004-05 after the plaintiffs’ bar engaged in a huge publicity campaign challenging the safety of Taser devices. Taser claims this week that it has won its 45th straight products liability case. (“Taser wins 45th-straight court case”, Business Journal of Phoenix, May 21). Little celebration to shareholders, as the stock is still in the single digits, perhaps because of the overhang: those 45 victories can be completely undone if a 46th court awards bankrupting punitive damages.
As Walter noted in November, Taser Int’l. is hardly innocent of engaging in litigation itself, though its suits against medical examiners seek only a change in ruling, and not damages. (Karen Farkas, “Taser sues over ’cause-of-death’ rulings”, Cleveland Plain-Dealer, Nov. 21). Kohler’s motion to dismiss for lack of standing was denied in January, and the case is in discovery. Taser has also sued an expert witness who testified against it in a losing case. (Taser 10-Q, May 2007).
Earlier discussion of Taser litigation: Feb. 17, 2006.