Axon Enterprise Is Under SEC Scrutiny. Should Investors Be Worried?
A spam filter plunged Taser maker Axon Enterprise (NASDAQ: AAXN) into an SEC inquiry, a falling stock, and numerous class action lawsuits. It could've been an otherwise humorous development, but for the ramification of what the regulatory probe is targeting.
Over the course of a month and a half beginning on Aug. 10, the SEC sent Axon a series of emails requesting explanations for several accounting practices, most prominently why its backlog surged in 2016. The SEC also wanted a fuller understanding of the company's revenue-recognition policies on its TASER 60 program that allows customers to pay for hardware purchases over five years.
Image source: Getty Images.
Source: Fool.com