Problems at ShotSpotter (SSTI)

Problems at ShotSpotter (SSTI)

ShotSpotter (NASDAQ: SSTI — $455 million) makes a gunshot audio detection system that can triangulate gunshots in real-time and alert law enforcement. The company’s products have questionable efficacy and have contributed to wrongful charges and imprisonments. Recent news reporting and changing political winds are going against the company. Last week, the Office of Inspector General for the City of Chicago published a scathing report and found “ShotSpotter alerts rarely lead to evidence of a gun-related crime.” The City of Chicago is the company’s largest customer.

Founded in 1996, ShotSpotter currently contracts with nearly 120 U.S. cities to provide gunshot detection and location services. Cities generally sign multi-year contracts for ShotSpotter to install dozens of audio detectors (pictured below) that can pinpoint the location of a gunshot based on how long it takes the sound to reach different microphones. After a gunshot is detected the audio is sent to a ShotSpotter control ro…