"US appeals court revives Mexico's $10 bln lawsuit against gun makers", 22 Jan 2024

A U.S. appeals court on Monday revived a $10 billion lawsuit by Mexico seeking to hold American gun manufacturers responsible for facilitating the trafficking of weapons to drug cartels across the U.S.-Mexico border.

The Boston-based 1st U.S. Circuit Court of Appeals overturned, opens new tab a lower-court judge's decision dismissing the case on the grounds that a U.S. law barred Mexico from suing Smith & Wesson Brands (SWBI.O), opens new tab, Sturm, Ruger & Co (RGR.N), opens new tab and others.

That law, the federal Protection of Lawful Commerce in Arms Act (PLCAA), provides the firearms industry broad protection from lawsuits over their products' misuse...

U.S. Circuit Judge William Kayatta, ... said that while the law can be applied to lawsuits by foreign governments, Mexico's lawsuit "plausibly alleges a type of claim that is statutorily exempt from the PLCAA's general prohibition."

He said that was because the law was only designed to protect lawful firearms-related commerce, yet Mexico had accused the companies of aiding and abetting illegal gun sales by facilitating the trafficking of firearms into the country.

... The country's U.S. lawyer, Steve Shadowen, called it "an important step forward in holding the gun industry accountable."

"It should now be clear that those who contribute to gun violence must face legal consequences, regardless of borders," Shadowen said in a statement...

Mexico says over 500,000 guns are trafficked annually from the U.S. into Mexico, of which more than 68% are made by the companies it sued, which also include Beretta USA, Barrett Firearms Manufacturing, Colt's Manufacturing Co and Glock Inc...

The companies deny wrongdoing. Their lawyers say Mexico's lawsuit is devoid of allegations the gun manufacturers' gun sales themselves did anything that would create an exception to PLCAA's broad protections.