US appeals court revives Mexico's $10 billion lawsuit against gun makers (updated)
22/01/2024 21:37
(Adds details from ruling, background in paragraphs 3-10)
By Nate Raymond
BOSTON, Jan 22 (Reuters) - 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 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 , Sturm, Ruger & Co RGR.N 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.
Mexico's lawyers argued the law only bars lawsuits over
injuries that occur in the U.S. and does not shield the seven
manufacturers and one distributor it sued from liability over
the trafficking of guns to Mexican criminals.
U.S. Circuit Judge William Kayatta, writing for the
three-judge panel, 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."
Lawyers for Mexico and the gun makers did not
immediately respond to requests for comment.
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.
In its August 2021 complaint, Mexico estimated that 2.2%
of the nearly 40 million guns made annually in the U.S. are
smuggled into Mexico, including as many as 597,000 guns made by
the defendants.
Mexico said the smuggling has been a key factor in its
ranking third worldwide in the number of gun-related deaths. It
also claimed to suffer many other harms, including declining
investment and economic activity and a need to spend more on law
enforcement and public safety.
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.
(Reporting by Nate Raymond in Boston; editing by Jonathan Oatis
and Marguerita Choy)
((Nate.Raymond@thomsonreuters.com and Twitter @nateraymond;
347-243-6917; Reuters Messaging:
nate.raymond.thomsonreuters.com@reuters.net))