Federal Judge Denies Nun’s Lawsuit
A federal judge in Nevada has dismissed a shareholder lawsuit filed against Smith & Wesson by a group of religious investors, marking the latest in a series of failed legal challenges targeting the firearm manufacturer’s business practices.
The plaintiffs, which included several Catholic-affiliated organizations such as the Adrian Dominican Sisters and the Sisters of St. Francis of Philadelphia, alleged that Smith & Wesson’s leadership breached its fiduciary duties by exposing the company to legal and financial risk through the manufacture and sale of AR-15-style rifles and similar firearms.
The suit argued that company executives knowingly permitted actions that could violate various federal, state, and local laws, thereby jeopardizing shareholder value.
This is not the first time such claims have been brought forward. A similar case filed in Nevada state court was dismissed in 2024, with the court rejecting the argument that the company’s lawful production and sale of firearms constituted a breach of fiduciary responsibility. The renewed federal case attempted to advance comparable claims but encountered the same outcome.
A Nevada federal judge today dismissed a lawsuit brought by a group of nuns who claim Smith & Wesson is violating its fiduciary duty to stockholders like them by continuing to sell AR-15s: https://t.co/XlmSAOhrtJ pic.twitter.com/XyLlWFTC7m
— Firearms Policy Coalition (@gunpolicy) March 24, 2026
U.S. District Judge Gloria M. Navarro dismissed the latest complaint but allowed the plaintiffs a limited opportunity to amend their filing. The court imposed a significant procedural condition: the plaintiffs must post a $500,000 security bond within 14 days if they intend to proceed with a revised complaint. The requirement introduces a substantial financial threshold that could influence whether the case moves forward.
Legal observers note that such bond requirements are designed to deter frivolous or speculative litigation, particularly in shareholder derivative cases where plaintiffs seek to act on behalf of a corporation.
By requiring financial backing, courts aim to ensure that claims are supported by sufficient legal and factual grounding before imposing further burdens on defendants.
The Firearms Policy Coalition highlighted that the bond condition mirrors an earlier procedural hurdle the plaintiffs had attempted to avoid by shifting venues from state to federal court. The reappearance of that requirement underscores the consistency in judicial handling of the case across jurisdictions.