A group of nuns with a stake in Smith & Wesson has filed a shareholder derivative lawsuit accusing the gunmaker of putting shareholders at risk due to the social and reputational damage associated with the AR-15 assault rifle.
According to a report in the Wall Street Journal, the lawsuit filed in Nevada state court alleges that company leaders are putting shareholders at risk and exposing the company to liability due to the way they have made and sold the rifle, which has been used in several mass shootings in recent years.
The gun company’s marketing practices “played a significant role in contributing to many of the most heinous gun crimes in United States history” by promoting its guns in ads mimicking first-person shooter games “appealing to young, and predominantly male consumers of such games,” the suit, seen by the newspaper, reads.
Lawrence Keane, senior vice president and general counsel for the National Shooting Sports Foundation, which represents gun makers, described the lawsuit as frivolous, according to the WSJ.