Utah-Based Vector Arms Files for Bankruptcy - WSJ (SWHC)

February 13, 2015 3:43 PM EST

Sturm Ruger (NYSE: RGR) and Smith & Wesson (Nasdaq: SWHC) are on watch Friday following reports that Vector Arms has filed for bankruptcy.

According to the WSJ, Vector was locked in a three-year legal battle with convicted felon Ralph Merrill. The dispute is to whether or not Merrill sold the company's gun-making equipment and inventory to current owner, Jason Maughn. The transaction was said to take place in 2011.

Merrill lost his arms-making license after trying to use China-manufactured bullets to fulfill a $298 million ammo order from the Afghanistan Security Forces.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Litigation, Trader Talk

Related Entities