Shares of stun-gun manufacturer Taser International Inc. (TASR) fell Monday morning after a jury ordered the company to pay $6.22 million in damages in a lawsuit brought against the company over its role in the death of Robert Heston.
The stock dropped about 10 percent, declining 77 cents by 10:00 am Eastern Time to $6.13 a share. Shares of the Scottsdale, Arizona-based company broke support and slid to their lowest level since December 2005.
Early Saturday, Taser revealed that a jury verdict in the U.S. District Court for the Northern District of California awarded a total of $6.22 million in damages against the company. In the case of Betty Lou Heston, et al. v. City of Salinas, the jury found that the extended duration of a Taser electronic control device or ECD contributed 15% to the arrest related death of Robert Heston on February 19, 2005.
The jury ruled on Friday to award $1.02 million in compensatory damages and $5.20 million in punitive damages against Taser based on alleged negligent failure to warn.
Plaintiffs alleged that Heston's death was caused by the muscle contractions associated with an extended simultaneous discharge from the three Taser ECDs used to subdue Heston. This compounded his methamphetamine intoxication and protracted violent activity leading to metabolic stress.
However, the officers who were involved in this very difficult and dangerous situation were exonerated for their actions as the parties involved, including the plaintiff, agreed that the Taser device was the best option available to the officers.
Taser said that it intends to pursue appropriate legal channels, including a motion for a new trial, judgment notwithstanding the verdict and filing an appeal in this matter as many world renowned experts had testified to the fact that the Taser ECD was not a causal factor in this death.
Commenting on the case and the verdict, vice president and general counsel of Taser, Doug Klint said, "Certainly, this was a tragedy for the Heston family as well as for the officers involved. We however do not feel that the verdict is supported by the facts including the testimony of the world class experts who testified on our behalf with scientific and medical evidence. Our commitment to continue to defend our life-saving products and to support law enforcement remains unchanged."
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