Check your spam box. It could be the SEC.
That's the lesson learned last week by Axon Enterprise Inc., the company best known for its Taser stun guns. Late Thursday, Axon announced that “due to miscommunication issues,” the company has just become aware of SEC requests regarding its previous financial reports and is now scrambling to respond. The stock fell as much as 7%, its biggest drop in more than two months.
What happened? Axon's internal email filters are to blame. The SEC sent its initial comment on Aug. 10 and follow-up requests only to Axon's new CFO, Jawad Ahsan, and they were quarantined in a spam filter. Dougherty & Co. analyst Jeremy Hamblin in a note to clients, called the incident “embarrassing, but nothing to be concerned about.”
Truth be told, the SEC sends these sorts of comment letters to companies all the time, Hamblin says. Next time, Axon is sure to be watching more closely. The company says it has already changed its email filter and established a more reliable line of communication with the agency.
From: Bloomberg News
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