SCOTTSDALE, Ariz., Jan. 3, 2020 /PRNewswire/ -- Axon (Nasdaq:
AAXN), the global leader in connected public safety technologies,
today filed a lawsuit in Phoenix
in the United States District
Court for the District of Arizona
against the US Federal Trade Commission (FTC). In its 29-page
complaint, Axon asked the court to declare the FTC's structure and
administrative procedures unconstitutional, and enjoin the
Commission from subjecting Axon to its unfair internal forum and
instead adjudicate the legality of the Vievu acquisition in a
federal court.
At dispute is the FTC's use of an internal administrative
proceeding that Axon alleges
violates its Constitutional rights to Due Process and Equal
Protection of law. In August 2018,
Axon disclosed an FTC investigation into its acquisition of Vievu —
a small, failing company acquired for only $7 million in cash and stock plus up to
$6 million in potential earn-outs
along with a holster supply agreement.
The complaint alleges that on
December 23, 2019, the FTC issued an
extraordinary ultimatum, demanding Axon to not only divest the
assets acquired in the Vievu acquisition, but to also surrender its
independently created intellectual property as part of a "blank
check" to create a competing spin-off, or else face an
unconstitutional proceeding in which the FTC serves the
simultaneous roles of prosecutor, judge and jury. In other
words, the FTC is seeking to deprive Axon of its intellectual
property without Due Process, an unprecedented strong-arm
position that should send a chilling message to the nation's
technology-based industries.
"No one should ever face the prospect of a government that can
demand to seize your most precious assets without the ability to
defend yourself in a fair and impartial court of law," said
Rick Smith, CEO and founder of Axon.
"If the FTC believes it has a strong case against us, it should
prove it in federal court before a neutral judge. Our action today
seeks to ensure that will happen."
In addition to demonstrating the FTC's alleged violation of Articles II and
III of the U.S. Constitution, Axon's complaint alleges that
Vievu was a failing company (with a mountain of debt and only 3
days of cash) before its 2018 acquisition by Axon, and that the
market for body cameras and digital evidence has remained
competitive, with ten competitors winning at least
55 sizable agency deals since the acquisition.
"Our entire business serves the justice system. So, we
understand the critical importance of the right to a fair and
impartial trial before an unbiased court. We have unwavering
resolve to seek justice," concluded Smith.
A copy of Axon's Complaint is available
at www.Axon.com/ftc.
About Axon
Axon is a global network of devices, apps, training and
people that helps public safety personnel become smarter and
safer. With a mission of protecting life, our technologies
give customers the confidence, focus and time they need to protect
their communities. Our products impact every aspect of a public
safety officer's day-to-day experience.
Facebook is a trademark of Facebook, Inc. and Twitter is a
trademark of Twitter, Inc.
Axon and the Delta Logo are trademarks of Axon Enterprise, Inc.,
some of which are registered in the US and other countries. For
more information, visit www.axon.com/legal. All rights
reserved.
Follow Axon here:
- Axon on Twitter: https://twitter.com/axon_us
- Axon on
Facebook: https://www.facebook.com/Axon.ProtectLife/
Note to Investors
Please visit http://investor.axon.com,
https://www.axon.com/press, www.twitter.com/axon_us and
https://www.facebook.com/Axon.ProtectLife/ where Axon discloses
information about the company, its financial information and its
business.
Contact: Sydney Siegmeth, VP
Global Communications, press@axon.com
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SOURCE Axon
