Estados Unidos Mexicanos v. Smith & Wesson Brands Inc., No. 22-1823 (1st Cir. 2024)
In Estados Unidos Mexicanos v. Smith & Wesson Brands Inc., the United States Court of Appeals for the First Circuit reversed the dismissal of a lawsuit brought by the Mexican government against several U.S. gun manufacturers and a distributor. Mexico alleged that these companies facilitated the illegal trafficking of firearms into Mexico, causing substantial harm to the country. The district court had dismissed the lawsuit under the Protection of Lawful Commerce in Arms Act (PLCAA), which generally shields gun manufacturers and sellers from liability for the criminal misuse of their products.
On appeal, the First Circuit agreed that the PLCAA applies to lawsuits brought by foreign governments for harm suffered outside the United States. However, the court also found that Mexico’s complaint plausibly alleged a type of claim that falls within an exception to the PLCAA’s general immunity. Specifically, the court held that Mexico’s allegations that the defendants knowingly violated federal and state laws governing the sale or marketing of firearms, and that these violations were a proximate cause of Mexico’s harm, could proceed under the PLCAA’s exceptions.
As a result, the First Circuit reversed the lower court’s dismissal and remanded the case for further proceedings, allowing Mexico’s claims to be explored in court.
