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MO – INDUSTRY INSIDER – Jimenez Arms, the Nevada-based gun manufacturer that Kansas City sued last month, has filed for Chapter 7 bankruptcy in Nevada.

The company’s bankruptcy petition listed assets of less than $50,000. That, coupled with more than $1,000,000 in outstanding liabilities, may make it difficult for Kansas City,  should it prevail in its lawsuit, to recover compensation from the company. The city sued Jimenez Arms in January, alleging the gun manufacturer was involved in a conspiracy to traffic handguns in Kansas City. The lawsuit argues Jimenez Arms created a “public nuisance” that caused the city and its residents “harm and substantial costs.” Speaking last month at a news conference to announce the lawsuit, Kansas City Mayor Quinton Lucas said the case represented the first municipal lawsuit filed against a gun manufacturer in more than a decade. Nonetheless, he said the city’s argument stood on “very strong legal footing.” The lawsuit joins — and shares many allegations with — an existing wrongful death lawsuit filed by the family of Alvino “Dwight” Crawford, who was killed in 2016 by a bullet from a Jimenez handgun allegedly trafficked as part of a conspiracy. Last week, a Jackson County judge rejected dual motions by Jimenez to dismiss the Crawfords’ suit.

Everytown Law, a branch of the gun control advocacy group Everytown for Gun Safety, assisted with both lawsuits against Jimenez.  [full article]

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