Smith & Wesson Lawsuit Dismissed: Shareholders’ Battle Ends in Nevada Court

SPRINGFIELD, MA (4-minute read) – On December 5, 2023, shareholders critical of Smith & Wesson’s continued production of AR-15 platform rifles initiated a legal challenge. The lawsuit was filed by groups including the Adrian Dominican Sisters and Sisters of the Holy Names of Jesus & Mary, among others. They accused Smith & Wesson’s board members and senior management of exposing the company to significant legal risks due to their AR-15 style rifles’ marketing and sales practices.

Despite the protection afforded to firearm manufacturers under the Protection of Lawful Commerce in Arms Act (PLCAA), the plaintiffs argued that Smith & Wesson’s actions, especially following the use of their AR-15 in a mass shooting, had invalidated these protections.

However, by March 13, 2024, the Clark County District Court in Nevada indicated a skeptical stance towards the plaintiffs’ claims. The court noted a misalignment between the activist shareholders and the company’s best interests and required a $500,000 bond to proceed with the lawsuit.

The plaintiffs failed to post the required bond by the April 23, 2024 deadline. Consequently, on May 6, 2024, Judge Joe Hardy dismissed the lawsuit, citing the plaintiffs’ inability to meet the court’s conditions. The case was officially closed under the title Adrian Dominican Sisters v. Smith & Wesson Brands, Inc., No. A-23-882774-B.

Firearm Safety Tip: Always ensure your firearm is unloaded when not in use and store it in a secure location to prevent unauthorized access.