(DailyVantage.com) – A group of liberal activists and shareholders is preparing a lawsuit against the board of Smith & Wesson, one of the largest firearm companies in the world, claiming the board violated their fiduciary duties by selling AR-15-style rifles. According to the shareholders preparing the lawsuit, the board subjected shareholders to increased liability due to the production, marketing, and sale of AR-15s. The shareholders will likely file the lawsuit in the coming weeks.
According to a draft of the pending lawsuit obtained by Fox News Digital, the shareholders will file legal action soon. The draft also claims that the board of Smith & Wesson, with knowledge about potential liability, violated United States law during the manufacturing process of AR-15s. The draft also alleges that the firearm company broke federal, local, and state laws during its marketing and sale of AR-15s to distributors nationwide.
AR-15s aren’t the only firearm cited in the pending lawsuit, as the activists and shareholders claim that semiautomatic firearms, in general, are the cause of increased liability. Despite alleging federal and state law violations, the draft failed to identify any specific statute violated by Smith & Wesson during its production, marketing, and sale of AR-15-style rifles. According to the lawsuit draft, Smith & Wesson’s failure to exercise proper oversight of its firearm production, manufacturing, and selling is the primary cause of the legal action.
The lawsuit against Smith & Wesson is the latest legal action against a gun manufacturer and is part of an ongoing liberal investment movement known as environmental, social, and governance, also known as the ESG. The ESG’s primary goal is to force investors and other businesspeople to exercise caution during business operations. Despite claiming the lawsuit has merit due to Smith & Wesson exposing its shareholders to unnecessary liability, the ESG faces criticism for its alleged political agenda.
ESG allocates money for investments to various causes, prompting some to accuse the movement of political bias. Climate change and electric vehicle production are among the causes for which the ESG allocates investment funds. The lawsuit against Smith & Wesson is sparking heavy criticism for the movement, as some investors claim the ESG is more concerned about political causes than finding the best possible returns for investors.
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