Axon v. Federal Trade Commission Media & Investor Briefing Page

Company Statement On Suing FTC

“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. If the FTC believes it has a strong case against us, it should prove it in federal court before a neutral judge. The Supreme Court’s unanimous decision moves us closer to that end. This is a win for all Americans seeking a neutral playing field and Axon is proud to have had the tenacity and staying power to see this through.”

— Rick Smith, CEO and founder of Axon

Relevant links:

  • Axon’s press release (HTML)
  • Axon CEO Rick Smith’s blog post published on Medium.com
  • Wall Street Journal Op-Ed on WSJ.com
Round 1 Executive Summary of FTC Proceedings - Axon’s Jurisdictional Challenge

01-03-20 The Federal Trade Commission initiated an administrative enforcement action (Docket No. D9389), alleging Axon’s May 2018 purchase of Vievu LLC—a small, failing body-worn camera company—was anticompetitive and adversely affected the BWC and digital evidence management market for “large metropolitan police departments,” which Axon denies.

01-03-20 Axon filed constitutional challenges to the FTC’s structure and processes in federal district court in Arizona (Case. No. 2:20-cv-00014-DWL), arguing the antitrust merits should be tried in a neutral Article III court instead in the FTC’s biased internal process.

04-08-20 Arizona court dismisses the case on jurisdictional grounds holding Axon must first present its constitutional claims in the FTC’s administrative proceedings.

10-02-20 Ninth Circuit Court of Appeals stayed the FTC’s administrative hearing pending the outcome of Axon’s appeal of the dismissal of its constitutional claims (Case No. 20-15662).

01-28-21 Ninth Circuit affirmed the jurisdictional dismissal order in a split 2-1 decision, but later granted Axon’s motion to continue the stay of the FTC administrative proceedings pending Axon’s petition for certiorari to the U.S. Supreme Court.

07-20-21 Axon filed cert petition with U.S. Supreme Court (No. 21-86), which was granted on 01-24-22. The case was argued on 11-07-22.

04-14-23 Supreme Court issued a unanimous decision in Axon’s favor finding district court jurisdiction over Axon’s constitutional challenges to the FTC’s structure and existence.

Click here or full details of these Round 1 proceedings with links to all case filings.

Round 2 Remand For Federal Court Merits Determination of Axon’s Constitutional Claims – AZ Case No. 2:20-cv-00014-DWL

05-22-23 Case remanded to AZ District Court

06-08-23 Stipulation to stay case for 60 days to allow discussion regarding potential resolution. Further agreement that administrative case will remain stayed if Axon’s constitutional claims proceed. Click here to view the stipulation to stay case for 60 days.

08-10-23 Status Report regarding no resolution progress and Axon’s desire to move forward with briefing without delay. Click here to view the status report.

08-15-23 Order directing Axon to file amended complaint by August 31 and parties to file proposed briefing schedule by October 10.

08-30-23 Axon’s Amended Complaint alleging (1) dual-layer protections afforded FTC Administrative Law Judge (“ALJ”) violates Article II; (2) for-cause removal protections afforded FTC Commissioners violate Article II; (3) the FTC’s structure violates Article III by denying federal court adjudication of core private rights; and (4) the FTC’s combined function structure violates Axon’s due process rights. Click here to view Axon's amended complaint.

Status of FTC Administrative Case Against Axon – Docket No. D9389

06-09-23 FTC prosecutors moved to withdraw the matter from adjudication

06-20-23 Commission Order withdrawing case from adjudication to consider “the proper resolution of this matter in light of the multi-year stay of the evidentiary hearing and the Supreme Court’s recent decision”

08-07-23 Commission Order extending withdrawal through October 10 “to allot additional time to consider the proper next steps”

Public versions of the parties’ pleadings and motions, as well the Commission and Administrative Law Judge orders may be found at: https://www.ftc.gov/enforcement/cases-proceedings/1810162/axonvievu-matter

Forward-looking statements
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