MONDAY, OCTOBER 7, 2024   ■   INDUSTRY

NSSF Praises SCOTUS Decision to Review Mexico’s Baseless $10 Billion Lawsuit

NSSF®, The Firearm Industry Trade Association, praised the U.S. Supreme Court’s decision to grant Smith & Wesson’s petition to hear Estados Unidos Mexicanos v. Smith & Wesson Brands, Inc., et al., Mexico’s frivolous $10 billion lawsuit against American firearm manufacturers seeking to blame them for the harm caused by lawless narco-terrorist drug cartels in Mexico. Mexico’s lawsuit also seeks to dictate how firearms are made and sold throughout the United States through a federal court injunction, in effect usurping the role of Congress and 50 state legislatures. NSSF filed an amicus brief earlier this year in support of the Supreme Court granting the case, arguing that the U.S. Court of Appeals for the First Circuit’s flawed decision, “blows a gaping hole in the PLCAA and rolls out the red carpet for a foreign government intent on vitiating the Second Amendment.” The U.S. Supreme Court will now set a briefing schedule and hold argument, likely early in the new year.

“Today’s announcement by the U.S. Supreme Court that they are granting Smith & Wesson’s petition to hear Mexico’s frivolous $10 billion lawsuit against lawful American firearm manufacturers is welcomed news to the entire firearm industry. Mexico’s lawsuit seeks to blame lawful American firearm businesses for violence in Mexico perpetrated by Mexican narco-terrorist drug cartels and impacting innocent Mexican lives. It is not the fault of American firearm businesses that follow strict laws and regulations to lawfully manufacture and sell legal products,” said Lawrence G. Keane, NSSF Senior Vice President and General Counsel. “This case represents exactly why Congress passed, and President George W. Bush enacted, the bipartisan Protection of Lawful Commerce in Arms Act (PLCAA). The case was rightly dismissed by a federal judge before the First Circuit Court of Appeals’ erroneous ruling earlier this year that reversed the district court order and reinstated the case. Lawful American firearm manufacturers follow American laws to make and sell lawful and Constitutionally-protected products. The Mexican government should instead focus on bringing Mexican criminals to justice in Mexican courtrooms.”

Mexico alleges U.S. firearm manufacturers are liable for the criminal violence perpetuated by narco-terrorist drug cartels by refusing to adopt gun control restrictions that exceed what the law requires for the strictly-regulated production and sale of firearms. A U.S. District court in Massachusetts dismissed the case, finding the claims were barred by the PLCAA. The U.S. Court of Appeals for the First Circuit, however, revived the case on Mexico’s appeal earlier this year. The First Circuit held that Mexico’s claims alleging that the defendants know their regular business practices contribute to illegal firearm trafficking fit within a narrow exception to the PLCAA. Smith & Wesson Brands, Inc., et al, the petitioners, argue the First Circuit erred when it reversed the lower court’s decision to dismiss the case. The petitioners also noted the First Circuit’s decision to allow for an exception to PLCAA fails because there is no evidence U.S. firearm manufacturers violated federal laws against aiding and abetting firearm trafficking. The petitioners explained to the Supreme Court that Mexico’s complaint “fails to identify any product, policy, or action by the American firearms industry that is deliberately designed to facilitate the unlawful activities of Mexican drug cartels.”

NSSF’s amicus brief concluded by urging Supreme Court action and pointing out that the First Circuit’s decision to reinstate the case was incorrect because it is “… emblematic of a recent trend of anti-gun governments (and courts) mendaciously skirting the PLCAA and using the resulting threat of bankruptcy-inducing tort liability to destroy a lawful industry that is vital to the exercise of a fundamental constitutional right. This Court’s intervention is imperative.”