Franklin Wireless Shares Tumble on Verizon Hotspot Recall

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 [e-mail]

(END) Dow Jones Newswires

April 09, 2021 10:40 ET (14:40 GMT)

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