Digital Ally (DGLY) Receives Favorable Verdict in Taser (TASR) Antitrust Suit

October 14, 2016 7:32 AM EDT

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Digital Ally, Inc. (Nasdaq: DGLY) announced that on October 13, 2016, the Federal District Court issued a ruling that denied the request of Taser International, Inc. ("Taser") to continue the stay of discovery on the Antitrust claims included in Digital Ally's lawsuit against Taser. The ruling allows Digital Ally to commence discovery, which eventually will include requests for production of documents, interrogatories, and depositions of Taser employees, former employees and consultants. The ruling also will also allow Digital Ally to undertake discovery of Taser's customers beginning with subpoenas, production of documents and, in time, depositions of the customer's employees, former employees, officials and consultants.

The Company filed suit on January 15, 2016 in the U.S. District Court for the District of Kansas (Case No: 2:16-cv-02032) against Taser, alleging that Taser willfully infringed the '292 Patent by selling and offering to sell its Axon Signal auto-activation technology. The Company initiated the lawsuit after the USPTO reconfirmed the validity of its '292 Patent. On February 2, 2016, the Company amended its complaint against Taser, which among other claims added a new set of claims to the lawsuit alleging that Taser conspired to keep Digital Ally out of the marketplace by engaging in improper, unethical, and unfair competition. The lawsuit alleges Taser bribed officials and otherwise conspired to secure no-bid contracts for its products in violation of both state law and federal antitrust law. Digital Ally's lawsuit also seeks monetary and injunctive relief, including treble damages, for these alleged violations.

Taser has filed a motion to dismiss the antitrust claims in the lawsuit that is still pending before the court. In addition, Taser previously received a stay of all discovery related to the antitrust claim portion of the lawsuit. With this ruling, the court has now lifted that stay and Digital Ally is now free to commence such discovery.

"The Company is very pleased that the court has denied Taser's request to stay discovery on the antitrust portion of the lawsuit and intends to commence such discovery immediately. Furthermore, the Company believes that the outcome of this litigation will generally set the competitive landscape for body-worn cameras utilized by law enforcement agencies for the foreseeable future," stated Stanton E. Ross, Chief Executive Officer of Digital Ally, Inc.

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