The so-called "phantom shares" also dramatically increased the number of TASER shares reportedly held by stockholders, the suit says.

“Objective shareholder voting data demonstrates that the defendants' unlawful selling of unregistered and unissued TASER shares flooded the market with counterfeit shares," it says. "For example, at the time of TASER's 2005 annual vote, TASER had approximately 61.1 million shares outstanding. Yet, approximately 82 million shares voted, an additional over-vote of approximately 20 million shares