Saturday, September 4, 2010

"Success" and failure - putting things into perspective

Taser International was recently celebrating the sale of about 2700 potentially-lethal X26 tasers to Texas. This was reported to be one of their largest sales ever. If we assume that the selling price was about $1000 each (probably a bit less), and generously assume that their gross margin is 40% (please, stop laughing...), then they stand to make a gross profit of about $1M (gross profit because they essentially never make net profits).

Compare the numbers:

One lawsuit recently cost them about $3M. One lawsuit. [LINK] An Taser International didn't settle for any other reason than the cold hard fact that they are as liable as hell. And they knew it. They were headed for a loss. So they caved and settled.

And now...
The parents of a mentally ill Sonoma County man who died after a sheriff's deputy shot him with a Taser are suing the manufacturer of the stun gun in federal court, claiming the weapon is unreasonably dangerous and unfit for use on human beings. Nathan Vaughn, 39, had been fighting with his father on Dec. 20, 2008 when his mother called deputies to come to their Larkfield home. When they arrived the fight was over and Vaughn had retreated into the rear of the house. A deputy entered and fired his Taser at least three times into Vaughn's chest, according to the lawsuit. Vaughn had a heart attack and died less than an hour later. ...
[LINK]

Taser International typically has several dozen lawsuits against it at any point in time. And their previously-impenetrable legal defense schemes lie shattered.

Do the math.

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