ShotSpotter Inc., whose technology is used by law enforcement to detect gunshots, has rebranded under a new name, after its stock tumbled following last week’s Chicago mayoral election.
In a statement Monday, the Fremont, Calif.-based company said it will now be called SoundThinking Inc., to reflect its “holistic focus on public safety” beyond simply helping police make gun-violence arrests.
“ShotSpotter established the acoustic gunshot detection category more than 25 years ago,” Chief Executive Ralph Clark said in a statement. “As the public safety landscape has evolved, we have evolved with it.”
ShotSpotter stock
SSTI,
sank more than 25% last Wednesday, after Brandon Johnson’s upset victory in Chicago’s mayoral runoff election. Johnson had campaigned on ending Chicago’s contract with ShotSpotter, which had been renewed last year by then-Mayor Lori Lightfoot.
The Chicago Sun-Times reported that Johnson had committed to end the deal, calling ShotSpotter technology “unreliable and overly susceptible to human error.” The newspaper also reported that CEO Clark reached out to the mayor-elect last week in hopes of continuing the company’s relationship with the city.
While ShotSpotter claims 97% accuracy, a 2021 report by the MacArthur Justice Center at the Northwestern University School of Law found that more than 90% of ShotSpotter alerts resulted in police finding no evidence of gunshots, and found a link between the technology and stop-and-frisk incidents by Chicago police.
A 2022 report by the nonprofit Surveillance Technology Oversight Project concluded ShotSpotter technology is an expensive boondoggle for cities that does little to reduce gun violence.
SoundThinking shares have fallen about 27% over the past five trading days, and are down 18% year to date, compared to the S&P 500
SPX,
which has been flat over the past week and is down about 7% in 2023.
This post was originally published on Market Watch
