
The US Supreme Court heard arguments yesterday in a $10B lawsuit filed by Mexico against US gun manufacturers, alleging they are complicit in supplying firearms to drug cartels. The lawsuit claims 70%-90% of guns recovered in Mexico originate from the US. The justices, who appeared skeptical of Mexico's claims, will decide whether to dismiss an appeals court ruling that allowed Mexico to sue the companies.
Mexico argues gun manufacturers knowingly profit up to $170M from sales to traffickers who smuggle weapons into the country, where strict laws make civilian gun purchases nearly impossible. The case is brought by Smith & Wesson and wholesaler Witmer Public Safety Group—six other companies were dismissed in August—who claim protection under a federal law barring lawsuits for criminal activities involving their products. A ruling favoring Mexico could weaken legal protections for gunmakers and expose other industries to similar liability suits.
Mexico has since said it may expand the lawsuit, arguing the companies are enabling terrorism following the Trump administration's designation of six Mexican cartels as terrorist organizations. A ruling is expected by late June.
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