The sisters claim that Smith & Wesson AR-15s have “been used by numerous perpetrators of highly publicized mass shootings” since 2012 and that “it was Smith & Wesson’s targeted marketing practices that ensured that its AR-15 rifles would be purchased and used by emotionally troubled young men through advertisements designed to take advantage of young men’s impulsive behavior and lack of self-control.”
The congregations argue in their suit that Smith & Wesson’s marketing techniques violate a 2000 agreement the company made with the federal government to not market in such a way as to appeal to juveniles or criminals.
“The company’s executives and board members have since chosen to flagrantly ignore the safe marketing practices … and instead focus on the continued targeting of young consumers, eschewing any effort to mitigate the potential harm to the company caused by such practices,” the sisters assert.
Further, the suit alleges that the Smith & Wesson’s board and executives “intentionally fail to take any steps to prevent or curb Smith & Wesson’s continued marketing and sale of the company’s AR-15 rifles in those jurisdictions [that ban the sale of AR-15s].”
Mark Smith, the president and CEO of Smith & Wesson, told CNA in a statement that Smith & Wesson “is proud to empower law-abiding American citizens with the ability to defend themselves and their families from harm.”
“This frivolous lawsuit is simply another instance in their long history of attempting to hijack and abuse the shareholder advocacy process to harm our reputation and company,” he said, adding that “this activist group is not interested in the best interests of the company or its stockholders.”
Norton, the sisters’ attorney, said in a Dec. 5 statement that the congregations of sisters “have long sought corporate responsibility” through “their shareholder activism,” which is the practice of buying stock in a company expressly to use that share to try to change how the organization is run.
This is not the first time this group of sisters has sued a company through shareholder activism. The sisters have also filed similar lawsuits against Hyatt Hotels and General Electric in the past, according to reporting by The Wall Street Journal.
All four congregations are also part of a group called the Interfaith Center on Corporate Responsibility, which has net assets in the low millions and, according to its website, is a “coalition of faith- and values-based investors who view shareholder engagement with corporations as a powerful catalyst for change.”
Peter Pinedo is a DC Correspondent for CNA. A graduate of Franciscan University, Peter previously worked for Texas Right to Life. He is a first lieutenant in the U.S. Army Reserve.