Franklin Wireless Shares Tumble on Verizon Hotspot Recall
10 April 2021 - 12:55AM
Dow Jones News
By Colin Kellaher
Shares of Franklin Wireless Corp. fell sharply for a second
straight day on Friday after Verizon Communications Inc. recalled
about 2.5 million Ellipsis Jetpack mobile hotspots imported by
Franklin due to fire and burn hazards.
The U.S. Consumer Product Safety Commission on Thursday said
Verizon was recalling the hotspots because the lithium ion battery
in the products can overheat, posing fire and burn hazards.
According to the CPSC, Verizon has received 15 reports of
devices overheating, including six reports of fire damage to
bedding or flooring and two reports of minor burn injuries.
Franklin, a San Diego provider of wireless access products, on
Friday said it is working with its battery and device manufacturing
partners to determine the cause and extent of the issue.
Verizon's Verizon Wireless unit sold the hotspots in its stores
and online from April 2017 through March of this year.
Franklin shares, which fell 14% Thursday amid early news of the
recall, were recently down 20.9% to $13.71.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
April 09, 2021 10:40 ET (14:40 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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