Summary
This 8-K filing from Axon Enterprise, Inc. (formerly TASER International, Inc.) on March 3, 2014, discloses a significant development in ongoing litigation. A jury returned a verdict of $3,300,000 against the company in the case of AA & Saba Consultants, Inc. v. TASER International, Inc. This verdict exceeds the company's previously established reserve of $750,000 by $2,550,000, which will be recognized as an additional expense in the fourth quarter of 2013. While the judgment has not yet been formally entered and is subject to potential attorneys' fees, the net impact on the company's reported fourth quarter 2013 financial results is an estimated increase in expense of approximately $1,548,000, or $0.03 per share on both a basic and diluted basis. The company strongly believes the verdict is not supported by the evidence and intends to appeal the decision. Investors should monitor the appeal process and any potential additional expenses related to legal fees.
Key Highlights
- 1Jury verdict of $3,300,000 rendered against the company in commercial litigation.
- 2The verdict in AA & Saba Consultants, Inc. v. TASER International, Inc. exceeds the prior reserve by $2,550,000.
- 3Additional expense of $2,550,000 to be recorded in Q4 2013 due to the verdict.
- 4Net financial impact on Q4 2013 results estimated at an additional $1,548,000 expense, or $0.03 per share.
- 5The company intends to appeal the jury's verdict, believing it is not supported by evidence.
- 6Potential for further expenses if attorneys' fees are awarded to the plaintiff.