The (Norfolk) Virginian-Pilot reported Tuesday the lawsuit, filed in January, alleges Stinger Systems (OTCBB:STIY) of Tampa advertised unmade products as ready for sale in 2004.

The lawsuit says Stinger and company President Robert Gruder advertised in magazines and sent mailings to law enforcement agencies between November 2004 and March 2005 offering its stun gun for sale, the newspaper said.

"In truth ... Stinger had not produced, sold or delivered any stun guns and the product was still in the design phase," the SEC complaint said.

The complaint alleges stock prices for Stinger were inflated when it began trading on NASDAQ because of its "misrepresentations."

An attorney for Gruder said his client disputes the allegations. No trial has been set.