Sued Shut.

• Author: Sager, Ryan H.
• Position: Local government lawsuits force firearms companies into bankruptcy - Brief Article

Though they've barely started, local-government lawsuits against gun manufacturers can already claim their first uncontested victories. Two small California gun makers have decided to close shop or seek bankruptcy protection rather than face the oncoming barrage of municipal lawsuits.

Davis Industries Inc. and Sundance Industries make so-called Saturday night specials, cheap guns that critics often associate with crime. Along with larger companies, they have been targeted by local governments under the theory that gun manufacturers should be held liable for crimes that may or may not have been committed with their products.

In September, a lawyer for Valencia-based Sundance Industries told The Wall Street Journal that the company filed for Chapter 7 bankruptcy because it "didn't have even the beginning of the resources to pay the legal fees" associated with the lawsuits. Chino-based Davis...