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Supreme Court Ruling On Gun Companies: Supreme Court Blocks Mexico's Gun Lawsuit Against US Companies, ET LegalWorld
Supreme Court Ruling On Gun Companies: Supreme Court Blocks Mexico's Gun Lawsuit Against US Companies, ET LegalWorld

Time of India

time43 minutes ago

  • Business
  • Time of India

Supreme Court Ruling On Gun Companies: Supreme Court Blocks Mexico's Gun Lawsuit Against US Companies, ET LegalWorld

The U.S. Supreme Court on Thursday spared two American gun companies from a lawsuit by Mexico's government accusing them of aiding illegal firearms trafficking to drug cartels and fueling gun violence in the southern neighbor of the United States. The justices in a 9-0 ruling authored by liberal Justice Elena Kagan overturned a lower court's ruling that had allowed the lawsuit to proceed against firearms maker Smith & Wesson and distributor Interstate Arms. The lower court had found that Mexico plausibly alleged that the companies aided and abetted unlawful sales routing guns to Mexican drug cartels, harming its government. Advt Advt Join the community of 2M+ industry professionals Subscribe to our newsletter to get latest insights & analysis. Download ETLegalWorld App Get Realtime updates Save your favourite articles Scan to download App The justices embraced the argument made by the companies for dismissal of Mexico's suit under a 2005 U.S. law called the Protection of Lawful Commerce in Arms Act that broadly shields gun companies from liability for crimes committed with their products. The Boston-based 1st U.S. Circuit Court of Appeals had decided in 2024 that the alleged conduct by the companies fell outside these Supreme Court decided that while it has little doubt that U.S. companies are aware of some unlawful sales to Mexican gun traffickers, Mexico's lawsuit failed to allege that the companies had aided and abetted such illegal firearms sales by deliberately helping to bring about the transactions."Mexico's plausible allegations are of 'indifference' rather than assistance," Kagan wrote. "They are of the manufacturers merely allowing some unidentified 'bad actors' to make illegal use of their wares." The case came to the Supreme Court at a complicated time for U.S.-Mexican relations as President Donald Trump pursues on-again, off-again tariffs on Mexican goods. Trump has also accused Mexico of doing too little to stop the flow of synthetic drugs such as fentanyl and migrant arrivals at the lawsuit, filed in Boston in 2021, accused the two companies of violating various U.S. and Mexican laws. Mexico claims that the companies have deliberately maintained a distribution system that included firearms dealers who knowingly sell weapons to third-party, or "straw," purchasers who then traffic guns to cartels in suit also accused the companies of unlawfully designing and marketing their guns as military-grade weapons to drive up demand among the cartels, including by associating their products with the American military and law enforcement. The gun companies said they make and sell lawful avoid its lawsuit being dismissed under the 2005 law, Mexico was required to plausibly allege that the companies aided and abetted illegal gun sales and that such conduct was the "proximate cause" - a legal principle involving who is responsible for causing an injury - of the harms claimed by Mexico. The Supreme Court, which heard arguments in the case on March 4, declined to resolve the proximate cause question after finding that Mexico's suit failed to adequately allege aiding and Arrocha Olabuenaga, the legal adviser for Mexico's Foreign Ministry, vowed that Mexico will continue pursuing its legal fight."While we are disappointed with the decision from this Supreme Court, we are convinced of the strength of our arguments and the evidence that upholds them, and we are encouraged by the support at home and abroad for Mexico's actions," he in the lawsuit had sought monetary damages of an unspecified amount and a court order requiring Smith & Wesson and Interstate Arms to take steps to "abate and remedy the public nuisance they have created in Mexico."The Second Amendment Foundation, a gun rights group that backed the U.S. gun companies in the case, welcomed Thursday's ruling."The lawsuit, dreamt up by multiple gun control groups, had one goal - bankrupt the American firearms market by allowing civil liability to apply for the criminal misuse of its products," the group said in a social media post. "Thankfully the Supreme Court stepped in and squashed it."Gun violence fueled by trafficked U.S.-made firearms has contributed to a decline in business investment and economic activity in Mexico and forced its government to incur unusually high costs on services including healthcare, law enforcement and the military, according to the a country with strict firearms laws, has said most of its gun homicides are committed with weapons trafficked from the United States and valued at more than $250 million Perez Ricart, an international affairs researcher at Mexico's Center for Economic Research and Teaching (CIDE), criticized the ruling."Once again, the industry is shielded. It doesn't matter how many bullets cross the border or how many people are killed on the Mexican side. Bullets are not the only things that kill; so does the legal impunity guaranteed by Washington," Ricart said in a social media post.

Supreme Court strikes down Mexico's lawsuit against US gun manufacturers
Supreme Court strikes down Mexico's lawsuit against US gun manufacturers

Yahoo

time3 hours ago

  • Politics
  • Yahoo

Supreme Court strikes down Mexico's lawsuit against US gun manufacturers

The United States Supreme Court has rejected a lawsuit from the government of Mexico that argued American gun manufacturers like Smith & Wesson failed to prevent illegal firearm sales to cartels and criminal organisations. In one of a slew of decisions handed down on Thursday, the top court decided that the Protection of Lawful Commerce in Arms Act shielded the gun manufacturers from Mexico's suit. The court's decision was unanimous. Writing for the nine-member bench, Justice Elena Kagan explained that even 'indifference' to the trafficking of firearms does not amount to willfully assisting a criminal enterprise. 'Mexico's complaint does not plausibly allege that the defendant manufacturers aided and abetted gun dealers' unlawful sales of firearms to Mexican traffickers,' Kagan wrote (PDF). 'We have little doubt that, as the complaint asserts, some such sales take place — and that the manufacturers know they do. But still, Mexico has not adequately pleaded what it needs to: that the manufacturers 'participate in' those sales.' The Mexican government's complaint, she added, 'does not pinpoint, as most aiding-and-abetting claims do, any specific criminal transactions that the defendants (allegedly) assisted'. The case stems from a complaint filed in August 2021 in a federal court in Boston, Massachusetts. In that initial complaint, the Mexican government — then led by President Andres Manuel Lopez Obrador — argued that the sheer volume of firearms illegally smuggled into its country amounted to negligence on the part of gun manufacturers. Those firearms, it said, had exacted a devastating toll on Mexican society. The country has some of the highest homicide rates in the world, with the United Nations estimating in 2023 that nearly 25 intentional killings happen for every 100,000 people. Much of that crime has been credited to the presence of cartels and other criminal enterprises operating in Mexico. The Igarape Institute, a Brazil-based think tank, estimated that Mexico's crime cost the country nearly 1.92 percent of its gross domestic product (GDP) from 2010 to 2014. The US is the largest arms manufacturer in the world — and also the largest source of illegally sourced firearms. The stream of firearms that pour into Mexico and the broader Latin America region, for instance, has been dubbed the 'iron river'. Nearly 70 percent of the illegal guns seized in Mexico from 2014 to 2018, for instance, were traced to origins in the US, according to the Department of Justice. That has led countries like Mexico to demand action from the US to limit the number of firearms trafficked abroad. In its lawsuit, Mexico targeted some of the biggest names in gun manufacturing in the US: not just Smith & Wesson, but also companies like Beretta USA, Glock Inc and Colt's Manufacturing LLC. But the firearm companies pushed back against the lawsuit, arguing they could not be held responsible for the actions of criminals in another country. The Supreme Court itself cast doubt on some of Mexico's arguments, including the idea that the gun manufacturers designed and marketed their products specifically for cartel buyers. 'Mexico focuses on production of 'military style' assault weapons, but these products are widely legal and purchased by ordinary consumers. Manufacturers cannot be charged with assisting criminal acts simply because Mexican cartel members also prefer these guns,' Justice Kagan wrote. 'The same applies to firearms with Spanish language names or graphics alluding to Mexican history,' she added. 'While they may be 'coveted by the cartels,' they also may appeal to 'millions of law-abiding Hispanic Americans.'' On Thursday, an industry trade group, the National Shooting Sports Foundation (NSSF), celebrated the Supreme Court's decision as a 'tremendous victory' against an unfair charge. It had filed an amicus brief in support of the defendants in the case. 'For too long, gun control activists have attempted to twist basic tort law to malign the highly-regulated U.S. firearm industry with the criminal actions of violent organized crime, both here in the United States and abroad,' the group's senior vice president, Lawrence G Keane, said in a statement. Keane added that he and others in the firearm industry felt 'sympathetic to plight of those in Mexico who are victims of rampant and uncontrolled violence at the hands of narco-terrorist drug cartels'. But he said the issue was about 'responsible firearm ownership', not the actions of gun manufacturers.

Supreme Court throws out Mexico's lawsuit against US gun industry
Supreme Court throws out Mexico's lawsuit against US gun industry

Yahoo

time3 hours ago

  • Business
  • Yahoo

Supreme Court throws out Mexico's lawsuit against US gun industry

The Supreme Court unanimously threw out Mexico's multi-billion-dollar lawsuit against the American gun industry on Thursday that sought to usher in major changes to firearm sales by holding companies liable for cartel violence. Justice Elena Kagan, writing for the majority, said the lawsuit is barred by the Protection of Lawful Commerce in Arms Act (PLCAA), a 2005 federal law that has provided firearms manufacturers broad legal immunity and come under criticism under from gun control advocates. Mexico claimed its lawsuit fell under an exception to the PLCAA that still permits lawsuits when a company 'knowingly violated' firearms laws and the violation proximately harmed the person suing. 'But that exception, if Mexico's suit fell within it, would swallow most of the rule,' Kagan wrote. 'We doubt Congress intended to draft such a capacious way out of PLCAA, and in fact it did not.' Mexico sued seven firearms manufacturers and one wholesaler in 2021, including Smith & Wesson and Glock, alleging they aided and abetted violence south of the border by not doing more to stop their guns from falling into Mexican cartels' hands. Most of the companies had since been dismissed from the lawsuit on other grounds, but two remained. The country sought $10 billion damages and a court injunction that would mandate various restrictions on how the companies could market and distribute guns. The Supreme Court took up the companies' appeal after a lower court allowed the lawsuit to proceed. The firearms industry was backed by gun rights groups like the National Rifle Association and the Firearms Policy Coalition, Speaker Mike Johnson (R-La.) and his leadership team, more than three dozen other Republican lawmakers, 26 Republican state attorneys general and the U.S. Chamber of Commerce. Mexico was backed by gun control groups like Everytown and March for our Lives Action Fund, roughly 40 Democratic lawmakers and Democratic state attorneys general from Washington, D.C. and 16 states. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Supreme Court rejects Mexico's lawsuit against U.S. gun makers
Supreme Court rejects Mexico's lawsuit against U.S. gun makers

Yahoo

time3 hours ago

  • Business
  • Yahoo

Supreme Court rejects Mexico's lawsuit against U.S. gun makers

WASHINGTON — The Supreme Court on Thursday threw out the Mexican government's lawsuit against U.S. firearms manufacturers accusing them of aiding and abetting gun violence. The court ruled unanimously that the lawsuit is barred by a 2005 federal law that shields gun companies from legal liability. Liberal Justice Elena Kagan, who wrote the opinion, acknowledged the gun violence problem, but said Mexico had failed to make allegations that would surmount those liability protections in claiming the companies aided and abetted the unlawful sale of guns. "The question presented is whether Mexico's complaint plausibly pleads that conduct. We conclude it does not," she wrote. The 2021 lawsuit accused Smith & Wesson, Colt and other companies of deliberately selling guns to dealers who sell products that are frequently recovered at Mexican crime scenes. The Mexican government said the aiding and abetting allegations meant that the companies were not protected by the federal immunity shield, called the Protection of Lawful Commerce in Arms Act. Mexico was seeking up to $10 billion in damages. The case at the Supreme Court involved two companies — Smith & Wesson and Interstate Arms. Other manufacturers, including Glock and Colt, successfully had claims against them tossed out. A federal judge initially ruled for the manufacturers, but the Boston-based 1st U.S. Circuit Court of Appeals revived the case last year, saying the liability shield did not extend to Mexico's specific claims. The case reached the Supreme Court following increased tensions between American and Mexican leaders after the election of President Donald Trump, who has cited drug trafficking and gang violence in Mexico amid his crackdown on undocumented immigrants. Democrats in Congress have introduced legislation intended to reduce the flow of guns across the border, which they estimate to total at least 200,000 a year. This article was originally published on

Supreme Court strikes down Mexico's lawsuit against US gun manufacturers
Supreme Court strikes down Mexico's lawsuit against US gun manufacturers

Al Jazeera

time3 hours ago

  • Business
  • Al Jazeera

Supreme Court strikes down Mexico's lawsuit against US gun manufacturers

The United States Supreme Court has rejected a lawsuit from the government of Mexico that argued American gun manufacturers like Smith & Wesson failed to prevent illegal firearm sales to cartels and criminal organisations. In one of a slew of decisions handed down on Thursday, the top court decided that the Protection of Lawful Commerce in Arms Act shielded the gun manufacturers from Mexico's suit. The court's decision was unanimous. Writing for the nine-member bench, Justice Elena Kagan explained that even 'indifference' to the trafficking of firearms does not amount to willfully assisting a criminal enterprise. 'Mexico's complaint does not plausibly allege that the defendant manufacturers aided and abetted gun dealers' unlawful sales of firearms to Mexican traffickers,' Kagan wrote (PDF). 'We have little doubt that, as the complaint asserts, some such sales take place — and that the manufacturers know they do. But still, Mexico has not adequately pleaded what it needs to: that the manufacturers 'participate in' those sales.' The Mexican government's complaint, she added, 'does not pinpoint, as most aiding-and-abetting claims do, any specific criminal transactions that the defendants (allegedly) assisted'. The case stems from a complaint filed in August 2021 in a federal court in Boston, Massachusetts. In that initial complaint, the Mexican government — then led by President Andres Manuel Lopez Obrador — argued that the sheer volume of firearms illegally smuggled into its country amounted to negligence on the part of gun manufacturers. Those firearms, it said, had exacted a devastating toll on Mexican society. The country has some of the highest homicide rates in the world, with the United Nations estimating in 2023 that nearly 25 intentional killings happen for every 100,000 people. Much of that crime has been credited to the presence of cartels and other criminal enterprises operating in Mexico. The Igarape Institute, a Brazil-based think tank, estimated that Mexico's crime cost the country nearly 1.92 percent of its gross domestic product (GDP) from 2010 to 2014. The US is the largest arms manufacturer in the world — and also the largest source of illegally sourced firearms. The stream of firearms that pour into Mexico and the broader Latin America region, for instance, has been dubbed the 'iron river'. Nearly 70 percent of the illegal guns seized in Mexico from 2014 to 2018, for instance, were traced to origins in the US, according to the Department of Justice. That has led countries like Mexico to demand action from the US to limit the number of firearms trafficked abroad. In its lawsuit, Mexico targeted some of the biggest names in gun manufacturing in the US: not just Smith & Wesson, but also companies like Beretta USA, Glock Inc and Colt's Manufacturing LLC. But the firearm companies pushed back against the lawsuit, arguing they could not be held responsible for the actions of criminals in another country. The Supreme Court itself cast doubt on some of Mexico's arguments, including the idea that the gun manufacturers designed and marketed their products specifically for cartel buyers. 'Mexico focuses on production of 'military style' assault weapons, but these products are widely legal and purchased by ordinary consumers. Manufacturers cannot be charged with assisting criminal acts simply because Mexican cartel members also prefer these guns,' Justice Kagan wrote. 'The same applies to firearms with Spanish language names or graphics alluding to Mexican history,' she added. 'While they may be 'coveted by the cartels,' they also may appeal to 'millions of law-abiding Hispanic Americans.'' On Thursday, an industry trade group, the National Shooting Sports Foundation (NSSF), celebrated the Supreme Court's decision as a 'tremendous victory' against an unfair charge. It had filed an amicus brief in support of the defendants in the case. 'For too long, gun control activists have attempted to twist basic tort law to malign the highly-regulated U.S. firearm industry with the criminal actions of violent organized crime, both here in the United States and abroad,' the group's senior vice president, Lawrence G Keane, said in a statement. Keane added that he and others in the firearm industry felt 'sympathetic to plight of those in Mexico who are victims of rampant and uncontrolled violence at the hands of narco-terrorist drug cartels'. But he said the issue was about 'responsible firearm ownership', not the actions of gun manufacturers.

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