Remington settles lawsuit for $73M: What's next?

One of the most significant court cases the firearms industry has faced in recent years is over, with Remington paying out a $73 million US settlement. The question now is: What happens next?

The background

The Remington lawsuit came in the aftermath of the Sandy Hook school shooting in December of 2012. Several families affected by the shooting joined forces to sue Remington, as the firearm used in the murders was manufactured by a Remington subsidiary (Bushmaster XM15-E2S).

Normally, in the US, firearms manufacturers are covered by the Protection of Lawful Commerce in Arms Act (PLCAA); basically, this law says that a firearms manufacturers products are used in a crime, the manufacturer is not liable for their misuse. Other industries see similar protection in the US, including vaccine manufacturers.

However, the Sandy Hook lawsuit claimed that Remington marketed its Bushmaster rifles to young, insecure males, and that that was a factor behind the Sandy Hook killer murdering his mother, stealing the Bushmaster rifle, and going on his rampage.

After much back-and-forth between lawyers, the Connecticut Supreme Court allowed the case to proceed in 2019, saying that state law allowed the lawsuit to proceed based on the rifle's marketing.

At the same time, Remington was going through bankruptcy, not once but twice. Remington attempted to settle the lawsuit during the process, reportedly for around $33M US, but the families shot that idea down. Now, after Remington's second bankruptcy sell-off, including divestiture of the Bushmaster brand, the estate of the former Remington company settled in mid-February for a reported $73M US (this does not come out of the pockets of the new, revived Remington company).

The road ahead

A long story, but it happened in Connecticut: how does it affect us in Canada?

It could affect us a lot, as this lawsuit payout could start a rush of other, similar suits in the US. Even if firearms manufacturers win these legal battles, it won't take long for the American firearms industry to get bogged down in court.

Note that Remington settled this suit, which doesn't set a legal precedent. However, practically speaking, no doubt other parties seeking legal action against gunmakers will now scent blood in the water. Already, the attorneys general of Massachusetts, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maryland, Michigan, Minnesota, New Jersey, New Mexico, New York, and Oregon have banded together to back an attempt by Mexico's federal government to sue US-based firearms manufacturers for a whopping $10 billion US. Mexico's federal government claims the US firearms industry is responsible for the violence inside Mexican borders.

Should that lawsuit proceed—and it seems highly possible, based on the current political climate in the US—then the US firearms industry is going to be in the tightest position it's seen in years.

Or maybe not. Just because you're willing to pay to make a lawsuit go away doesn't mean you would have lost. Insurance companies can force a settlement, as they'd rather pay out than continue a pricey court battle. As the US's National Shooting Sports Foundation said in a statement:

The settlement also does not alter the fundamental facts of the case. The plaintiffs never produced any evidence that Bushmaster advertising had any bearing or influence over Nancy Lanza’s decision to legally purchase a Bushmaster rifle, nor on the decision of murderer Adam Lanza to steal that rifle, kill his mother in her sleep, and go on to commit the rest of his horrendous crimes. We renew our sincere sympathy for the victims of this unspeakable tragedy and all victims of violence committed through the misusing of any firearm. But the fact remains that modern sporting rifles are the most popular rifle in America with over 20 million sold to law abiding Americans and rifles, of any kind, are exceedingly rarely used in crime.

The Connecticut Supreme Court wrote in its Soto v. Bushmaster (4-3) opinion, “[T]he plaintiffs allege that the defendants’ wrongful advertising magnified the lethality of the Sandy Hook massacre by inspiring Lanza or causing him to select a more efficiently deadly weapon for his attack. Proving such a causal link at trial may prove to be a Herculean task.” NSSF believes the Court incorrectly allowed this one claim to go forward to discovery. We remain confident ROC would have prevailed if this case proceeded to trial.

Finally, this settlement orchestrated by insurance companies has no impact on the strength and efficacy of the Protection of Lawful Commerce in Arms Act (PLCAA), which remains the law of the land. PLCAA will continue to block baseless lawsuits that attempt to blame lawful industry companies for the criminal acts of third parties.

So, don't panic yet: Remington, Ruger, Kel-Tec, Kimber, Smith & Wesson, Mossberg et. al. might not be in a terribly weakened position, and you should be able to buy their US-built products for years to come yet ... as long as we can figure out the supply chain problems.