No, the Supreme Court Didn't Just Bankrupt the Gun Industry
The U.S. Supreme Court recently ruled that the families of victims of the 2012 Newtown, Connecticut, school shooting can sue gun manufacturer Remington Arms. In doing so, the court risks opening the floodgates for plaintiffs' attorneys to begin suing firearms companies for how they market their guns.
Although the case hasn't established any liability yet for Remington, which is privately held, the court's failure to review the case allows the families to proceed with their lawsuits alleging the gunmaker violated Connecticut's consumer-product protection laws for the way it marketed its firearms.
It also means the Connecticut Supreme Court's ruling that the state's unfair trade practices law applies to gunmakers could make them accountable for the actions of criminals. Investors are right to be concerned about the fallout.
Source Fool.com
