SoundThinking Responds to New York City Comptroller Audit Report; Refutes Misleading Conclusions

Rhea-AI Summary

SoundThinking (Nasdaq: SSTI) has issued a formal reply to the New York City Comptroller's audit report on ShotSpotter's accuracy and effectiveness. The company refutes two main conclusions from the report: (1) low rates of confirmed shots detected, and (2) negligible improvements in NYPD response times. SoundThinking's 47-page response includes empirical data, independent studies, and testimonials from law enforcement professionals and public officials.

The company argues that the report ignored critical components of the technology's effectiveness, such as providing real-time awareness of gunfire, enabling quick and safe police response, and saving lives. SoundThinking maintains that ShotSpotter consistently exceeds the 90% accuracy standard required by its contract with NYPD. This response follows support from 11 Massachusetts law enforcement chiefs praising ShotSpotter's accuracy and value.

Positive

• ShotSpotter consistently exceeds 90% accuracy standard required by NYPD contract
• Support from 11 Massachusetts law enforcement chiefs for ShotSpotter's accuracy and value
• Technology provides real-time awareness of gunfire and enables quick police response

Negative

• New York City Comptroller's audit report questions ShotSpotter's efficacy
• Report claims low rates of confirmed shots detected and negligible improvements in NYPD response times

Insights

Technology Expert

SoundThinking’s response to the New York City Comptroller’s audit report hinges on the efficacy of its ShotSpotter technology, a gunshot detection system. From a technology expert’s perspective, the company’s defense emphasizes the reliability and accuracy of its product, stating it achieves an over 90 detection accuracy rate. This is vital as accuracy is paramount in safety-critical systems like gunshot detection. For investors, this sets an important precedent about the robustness of the technology under scrutiny. It indirectly reassures stakeholders that the product meets high standards despite criticism. However, the significant reliance on testimonials and success stories over independent third-party validation might raise some eyebrows regarding the objectivity of the evidence presented.

Market Research Analyst

Analyzing how SoundThinking’s response might affect the market perception, it’s important to note that public safety technologies often have a volatile reception based on public trust and operational evidence. The company’s rebuttal against the audit report aims to sustain confidence among current and potential clients, including city administrations and law enforcement agencies. For investors, the defense strategy indicates an attempt to mitigate any potential negative impacts on future contracts and revenue streams. However, the reliance on in-house data and supportive voices from affiliated law enforcement could appear as a self-serving defense rather than a comprehensive rebuttal, potentially affecting investor confidence in the short term.

Legal Expert

From a legal standpoint, SoundThinking’s detailed formal reply serves as a important document in maintaining and potentially defending contractual obligations and public trust. By affirming over 90 monthly accuracy rates, the company aligns itself with contractual commitments to the NYPD. This is a calculated move to preempt any legal disputes or contract cancellations that might arise from the audit’s findings. For investors, understanding the legal ramifications and the company's preparedness to counter legal challenges is essential in evaluating long-term stability and operational risks.

Relating to ShotSpotter Gunshot Detection Efficacy

FREMONT, Calif., July 17, 2024 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology company, today announced that it issued a formal reply to the New York City Comptroller’s June 20, 2024 audit report (the “Report”) on ShotSpotter’s accuracy and effectiveness. The 47-page response letter—which incorporates findings, independent studies, and success stories and testimonials from a broad array of law enforcement professionals, public officials, and the media—focuses on the misinformed conclusions regarding ShotSpotter’s efficacy and the role that it plays in providing the New York Police Department (NYPD) with an important tool to fight New York City’s scourge of gun violence.

SoundThinking’s response relies on empirical data, as well as the feedback of New York City elected officials and law enforcement professionals, to refute two misleading conclusions put forward in the Report, namely that: (1) ShotSpotter results in “very low rates of confirmed shots detected,” and (2) ShotSpotter leads to negligible improvements in NYPD response times to reports of shots fired.

The letter reveals that in arriving at the aforementioned conclusions, the Report did not give full and proper weight to NYPD’s input and expertise and ignored the most critical component when judging the technology: “whether ShotSpotter provides awareness of gunfire in real time, if it enables police to respond quickly and safely, and, most importantly, how it saves lives.”

The information contained in SoundThinking’s response proves that ShotSpotter achieves all these goals at a rate that—the overwhelming majority of the time—exceeds the 90% accuracy standard that the company is contractually obligated to deliver each month per its agreement with NYPD.

SoundThinking’s response to Comptroller comes on the heels of an open letter written by 11 Massachusetts law enforcement chiefs and commissioners in support of the accuracy, effectiveness, and value of ShotSpotter technology.

Read the formal response here.

About SoundThinking
SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by approximately 250 customers and has worked with over 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmart™ platform includes ShotSpotter^®, the leading acoustic gunshot detection system; CrimeTracer™, the foremost law enforcement search engine; CaseBuilder™, a one-stop investigation management system; ResourceRouter™, software that directs patrol and community anti-violence resources to help maximize their impact; and SafePointe^®, a next-generation concealed weapons detection system. SoundThinking has been designated a Great Place to Work^® Company. Please visit www.soundthinking.com.

Company Contact:
Alan Stewart, CFO
SoundThinking, Inc.
+1 (510) 794-3100
astewart@soundthinking.com

Investor Relations Contact:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
+1 (949) 574-3860
SSTI@gateway-grp.com

FAQ

What is SoundThinking's response to the New York City Comptroller's audit report on ShotSpotter?

SoundThinking issued a 47-page formal reply refuting the report's conclusions, providing empirical data, independent studies, and testimonials from law enforcement professionals and public officials to support ShotSpotter's efficacy.

What are the main conclusions of the New York City Comptroller's report on ShotSpotter (SSTI) that SoundThinking disputes?

SoundThinking disputes two main conclusions: (1) that ShotSpotter results in low rates of confirmed shots detected, and (2) that it leads to negligible improvements in NYPD response times to reports of shots fired.

How does SoundThinking (SSTI) claim ShotSpotter performs compared to its contractual obligations with NYPD?

SoundThinking states that ShotSpotter consistently exceeds the 90% accuracy standard required by its contract with NYPD, delivering this performance the overwhelming majority of the time.

What recent support has ShotSpotter received from law enforcement officials?

11 Massachusetts law enforcement chiefs and commissioners recently wrote an open letter supporting the accuracy, effectiveness, and value of ShotSpotter technology.