NEW YORK, July 22, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Axon Enterprises, Inc. ("Axon" or the "Company") AAXN. Such investors are advised to contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext. 9980.
The investigation concerns whether Axon and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On June 19, 2019, Spruce Point Management ("Spruce Point") published a report on Axon, asserting that "[w]ith a history of SEC inquiries, delinquent filings, and material weaknesses, we believe Axon will shock investors with significant earnings disappointment and increasing cash burn as it fails to scale beyond [its] niche businesses." Among other issues, Spruce Point alleged that "Axon quietly increased its line of credit from $10m to $100m (without filing an 8-K), an odd move given it has $350m of cash on its balance sheet, no debt, and is forecasted to produce profits this year of $56m according to analyst projections"; that "Axon has concealed its dependence on Chinese imports"; and that "Spruce Point has unearthed 401k plan filings at the IRS where Axon admits errors dating back to 2014" despite the fact that "Axon has never disclosed errors or accounting issues tied to compensation expenses." Following publication of the Spruce Point report, Axon's stock price fell sharply during intraday trading on June 19, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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