'Chicago To Stop Using Controversial Gunshot Detection Technology This Year; Chicago's $49M Contract With SoundThinking Expires Friday' - AP News
Portfolio Pulse from Benzinga Newsdesk
Chicago announced it will not renew its $49M contract with SoundThinking for the ShotSpotter gunshot detection system, citing concerns over inaccuracy, racial bias, and misuse by law enforcement. The system, criticized by an AP investigation and community groups, will be phased out by late September. Mayor Brandon Johnson, fulfilling a campaign promise, aims to focus on strategies that effectively reduce violent crime and build trust within the community. Violent crime in Chicago has seen a 30% drop in homicides at the start of 2024.
February 13, 2024 | 8:30 pm
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NEGATIVE IMPACT
Chicago's decision to not renew the ShotSpotter contract with SoundThinking could negatively impact SSTI's financial performance and investor sentiment.
The non-renewal of a significant $49M contract with a major city like Chicago directly impacts SoundThinking's (ShotSpotter) revenue and could harm investor sentiment due to concerns over the technology's effectiveness and ethical implications. This decision may also influence other cities to reconsider their contracts, further affecting SSTI's market position and future earnings.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90