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Smith & Wesson, the gun manufacturer, must comply with a New Jersey subpoena seeking documents as officials investigate whether the company engaged in deceptive advertising, a U.S. appeals court ruled Tuesday.<\/p>\n
The documents being sought include anything that suggests the concealed carry of a firearm \u201cenhances one\u2019s lifestyle<\/a>,\u201d or says it\u2019s safer to draw a gun to confront a perceived threat than to back away. The panel, in a 2-1 vote, rejected the gun-maker\u2019s efforts to have a federal court quash the 2020 subpoena after a New Jersey court refused to do so.<\/p>\n \u201cLitigants get one opportunity to make their arguments. Not two,\u201d Chief Judge Michael A. Chagares of the 3rd U.S. Circuit Court in Philadelphia\u00a0wrote.<\/a><\/p>\n The state is exploring whether Smith & Wesson<\/a>, through misstatements or knowing omissions, misled consumers about \u201cthe safety, benefits, effectiveness, and legality of its products,\u201d thereby violating its Consumer Fraud Act.<\/p>\n The investigation \u2014 which is civil, not criminal \u2014 began under former New Jersey Attorney General Gurbir Grewal and has continued under his successor, Matthew J. Platkin.<\/p>\n Platkin\u2019s office, in a statement, said the appeals court had \u201crightly rejected Smith & Wesson\u2019s attempts to undercut the state courts\u2019 confirmation\u201d of New Jersey\u2019s right to investigate potential fraud and misconduct.<\/p>\n Smith & Wesson has argued that state officials are abusing their power by joining forces with Second Amendment foes and violating the company\u2019s free speech and other rights. The company did not immediately return messages seeking comment left with both a media contact and lawyer Courtney G. Saleski, who argued the case.<\/p>\n Dissenting Judge Paul Matey, a President Donald Trump appointee, questioned the legitimacy of the state\u2019s \u201cnovel\u201d effort to pursue the gun-maker on consumer protection grounds. Victims of gun violence, including\u00a0the mother of a 10-year-old<\/a>\u00a0killed in the Uvalde school shooting in Texas, similarly hope to hold gun-makers accountable by looking at whether they illegally market their weapons to juveniles.<\/p>\n \u201cMore than three years ago, Smith & Wesson asked a federal court to decide whether the novel decision by New Jersey\u2019s Attorney General to use a state consumer fraud law to investigate ads for ordinary guns and ammo treads on the freedoms recognized by the U.S. Constitution,\u201d Matey wrote in a stinging dissent. \u201cToday, and four opinions later, those questions remain unanswered.\u201d<\/p>\n The state\u2019s probe of Smith & Wesson comes as New Jersey pursues several avenues to tighten its already strict gun laws.\u00a0Last summer<\/a>, the same appeals court upheld a 2022 state law that allows the attorney general to bring \u201cpublic nuisance\u201d claims against gun-makers.<\/p>\n In all, Democratic Gov. Phil Murphy has signed at least a dozen new measures aimed at curtailing gun violence, including one that orders new residents to register their firearm with police; one authorizing extreme risk protection orders for people deemed a risk to themselves or others; and a limit on magazine capacity from 15 to 10 rounds.<\/p>\n David Pucino, legal director of the gun control think tank Giffords, called the latest decision \u201can important procedural win\u201d for Platkin\u2019s office and consumers and a loss for the gun industry.<\/p>\n \u201cNo industry should not be able to mislead or deceive consumers, especially when their personal safety is on the line,\u201d Pucino said.<\/p>\n<\/div>\nSubscribe to the Fortune Next to Lead newsletter to get weekly strategies on how to make it to the corner office. Sign up for free<\/a>.<\/div>\n