An investigation on behalf of investors of Axon Enterprise Inc (NASDAQ:AAXN) shares over potential securities laws violations by Axon Enterprise and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Axon Enterprise Inc (NASDAQ:AAXN) concerning whether a series of statements by Axon Enterprise Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Scottsdale, AZ based Axon Enterprise Inc, formerly TASER International, Inc., is engaged in development, manufacture and sale of conducted electrical weapons (CEWs) for use by law enforcement, military, corrections and private security personnel, and by private individuals for personal defense.

Axon Enterprise Inc reported that its annual Total Revenue rose from $197.89 million in 2015 to $268.25 million in 2016 and that its Net Income declined from $19.93 million in 2015 to $17.30 million in 2016.

On October 19, 2017, Axon Enterprise Inc announced during aftermarket hours that the U.S. Securities and Exchange Commission (SEC) is reviewing its financial statements. Specifically, the SEC issued three letters in August and September seeking additional information relating to Axon Enterprise Incs Form 10-K for the year ended December 31, 2016 and Form 10-Q for the quarter ended March 31, 2017. In the SECs third letter dated September 20, 2017, it stated its inquiries remained outstanding and unresolved, and absent a substantive response, we would act consistent with our obligations under the federal securities laws.

Shares of Axon Enterprise Inc (NASDAQ:AAXN) declined on October 26, 2017 to $2.08 per share.