High Court Nixes Mexico’s $10 Billion Gun Suit

Smith & Wesson Brands v. Estados Unidos Mexicanos

Wildfire Insurance Dispute: Malibu Homeowners Sue USAA and AAAIn a rare 9‑0 opinion, the U.S. Supreme Court on June 5 slammed the courthouse door on foreign attempts to sue U.S. gun makers for cartel violence south of the border.

Key Holding

Justice Kagan wrote that Mexico’s negligence‑based claims do not fit the “predicate exception” to the Protection of Lawful Commerce in Arms Act (PLCAA). To qualify, a plaintiff must plausibly allege that the manufacturer knowingly aided and abetted a specific unlawful sale. Mere failure to police downstream dealers is not enough.

Business & Policy Ripples

  • PLCAA’s armor reinforced: The unanimous ruling signals that even creative public‑nuisance theories will struggle against the statute’s broad immunity.
  • Foreign‑sovereign litigation curtailed: Other countries eyeing U.S. products—from opioids to social‑media algorithms—face a higher bar.
  • Legislative stalemate likely: With the Court reading PLCAA strictly, reform advocates will have to persuade a divided Congress to amend the law—a long shot in an election year.

Looking Ahead

Expect Mexico to pivot to diplomatic channels and border‑control initiatives. U.S. firearms firms, meanwhile, are touting the decision in ongoing state‑court suits alleging negligent marketing.

Skip to content