Taser International, Inc. (NASDAQ:TASR) shares are plummeting as one of its rivals beat the company to a lucrative deal.
The electrical stunner and other police equipment provider was seen as the favorite to sign a deal with the New York Police Department for body cameras. However, rivals Vievu were chosen by the NYPD for the contract.
The deal will net the company $6.4 million over a five-year period during which Vievu will supply the agency with 1,000 body cameras. Taser is also facing flak over a case surrounding one of its products that led to a man’s death.
Ronald Armstrong — who lived in Pinehurst, North Carolina — was killed through the use of a taser following an incident outside a hospital. The man was mentally ill, suffering from bipolar disorder and schizophrenia.
He was seen outside the hospital, where a police officer saw him and he put his arms and legs around a pole, refusing to move. The officer used a Taser five times in a two-minute period, leading to his death.
The case was brought into a Supreme Court case where it was ruled that the officer complied with state regulations, thus relieving him of any punishment for Armstrong’s death.
The court said it would not review its ruling, despite a lawsuit from the family.
TASR stock took a nosedive on Monday, slipping more than 14% early in the afternoon.
