Smith and Wesson

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S&W CEO Hits Back At Anti-Gun Politicians

August 17, 2022 by 2 Comments

Smith & Wesson Brands, Inc. CEO Mark Smith has had it with the anti-gun politicians in Congress like Rep. Carolyn Maloney (D-NY). He noted that they are trying to blame firearm manufacturers like his for the surge in crime. Rather, Smith notes, it is their own policies that are to blame.

To be clear, a Smith & Wesson firearm has never broken into a home; a Smith & Wesson firearm has never assaulted a woman out for a late-night run in the city; a Smith & Wesson firearm has never carjacked an unsuspecting driver stopped at a traffic light.
Instead, Smith & Wesson provides these citizens with the means to protect themselves and their families.

I like the cut of this guy’s jib!

You can read the whole response which I have embedded below. He takes no prisoners and nor should he.

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Gun Prohibitionists And Shareholder Proposals

August 10, 2022 by 2 Comments

When I was a child growing up Catholic, I was taught to respect and admire nuns. These women religious had taken vows of poverty, chastity, and obedience. They served the poor and the downtrodden, they worked to heal those that were ill, and they taught children in all phases of their education. Indeed, my Great-Aunt Tessie, one of my maternal grandfather’s older sisters, was a Sister of Charity who took the name Sr. Joseph Scholastica.

Thus, I am dismayed and angered when I see the continuous effort at gun prohibition by certain orders of Catholic nuns. Their tool is to buy a minimal number of shares of a firearms company and then submit a shareholder proposal advocating for certain reports on “gun violence” or adoption of the UN’s Guiding Principles on Business and Human Rights. If they can get buy-in from one of the proxy advisory firms such as Glass Lewis or Institutional Shareholder Services (ISS), they have a good chance of passing their proposal regardless of the harm it will do to the firearms company and its business. This is because many institutional investors just go along with whatever the proxy advisor says to do.

Such is the case in an effort by the Adrian Dominican Sisters of Adrian, Michigan with their shareholder proposal now before shareholders of Smith and Wesson Brands, Inc.

Their proposal, states in part:

As investors, we seek to identify and assess human rights risks and impacts in portfolio companies because they can have direct implications for shareholder value and, depending on how they are managed, can affect a company’s long-term viability.

Given the lethality of firearms products and the potential for their misuse, the risk of adverse human rights impacts is especially elevated for all gun manufacturers, including SWBI…

While SWBI has a number of corporate policies, including a Corporate Stewardship Policy and a Code of
Ethics, the information available on its website does not mention a public commitment to respect human
rights.

This is utter nonsense. I wonder if the good sisters are now pushing any other shareholder proposals that call out the many companies that have recently stated post-Dobbs that they will pay for travel expenses for employees to get an abortion. Abortion is most certainly against Catholic doctrine. Meanwhile, Catholic doctrine since the time of St. Thomas Aquinas and his Just War Theory has recognized the right to self-defense. The current Catechism of the Catholic Church recognizes the moral duty to defend not only one’s own life but that of others. This includes, if necessary, the use of lethal force and the killing of the aggressor.

Smith & Wesson is not caving to these demands. Indeed, they are calling them out on it.

First, they note that this is the fifth year in a row that the Adrian Dominican Sisters have submitted such a shareholder proposal and that the company has engaged them and other shareholders directly on their concerns.

Then they point out:

Our approach is guided by the knowledge that we are responsible for safeguarding stockholder value in a highly politicized environment. These safeguards are swept aside by the proponent’s insistence on the singular path of the UNGP, the essence of which is to require companies to “remedy” harms that are identified by third-parties that have no financial interest in those companies. Indeed, the proposal on its face insists that we do so “regardless of legal requirements.” Multiple groups estimate these extra-legal
“human rights costs” at $280 billion per year.

It is not necessary to expose our stockholders to this risk. Our proven approach – of working with stockholders to identify and manage specific financial risks and impacts through active oversight – is superior to the proponent’s imposition of an external convention that supplants stockholder control.

S&W points out they have established a Environmental, Social, and Governance Committee on the board, published fact sheets dealing with environmental factors as well as the firearms market, established a video library on safe firearms handling, and adopted a corporate stewardship policy.

S&W then brings out the big guns, so to speak:

The proponent now has acknowledged that the proposal seeks to harm our business. For the past five years, we have explained that the proponent is part of a well-funded and well-organized campaign that aims to damage our business. The proponent has recently confirmed our concerns by:
• Calling for a ban of lawful firearms, including some of our most popular products.
• Calling on stockholders of service businesses, particularly banks and insurers, to engineer a boycott
of our industry.
• Targeting credit card companies to compel them to cease processing payments for certain firearm
products.

They document each of these assertions in the footnotes.

Finally, they point out the experience of Ruger with these nuns and other like groups in which these so-called human rights groups with no financial stake in the company would “design the program that will establish Ruger’s liability– liability ‘above and beyond legal and regulatory matters.'”

I don’t know whether this proposal will end up passing or not. A lot will depend upon how institutional investors such as pension funds and mutual funds vote. My personal opinion is that the managers of index funds should not have a vote on proxy matters. They only invest in the stock because it is part of an established index and not because of the product, the management team, or how it is governed. But that is only my own personal opinion in which others may differ.

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Smith and Wesson Virtual Event

March 16, 2021 by

Smith & Wesson just held a 15-minute virtual event. It was to showcase the company and to introduce their new M&P 9 Shield Plus. With the extended magazine, it will hold 13 +1 rounds. There is also a Performance Center version which features fiber optic sights, has cuts for red dot optics, and has lightening cuts in the slide.

I haven’t seen it side by side with the Sig P-365 or the Springfield Hellcat but it is obvious that is what they are targeting with this new introduction.

The 15-minute video of the event is below. I thought it was well done. It told the history of the company, how they dealt with both the pandemic and the increased demand for firearms, how they are working to train new shooters, and then ends with the introduction of the new pistol. You will need to scroll to almost the end before the actual event starts.

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Smith & Wesson Sues NJ Attorney General

December 16, 2020 by 5 Comments

Smith & Wesson filed suit against New Jersey Attorney General Gurbir Grewal yesterday. The suit is brought in US District Court for the District of New Jersey. It was brought in response to a fishing subpoena issued by Grewal’s office “seeking evidence of consumer fraud related to advertising.”

Smith & Wesson accuses Grewal of trying to suppress free speech.

Following in the abusive footsteps of these repressive regimes, the New Jersey Attorney General has taken a series of actions to suppress Smith & Wesson’s speech, and with the intention of damaging Smith & Wesson both financially and reputationally. The most recent such action is the issuance of an administrative subpoena (the “Subpoena”) on October 13, 2020 that allegedly seeks evidence of consumer fraud relating to advertising – but in reality, it seeks to suppress and punish lawful speech regarding gun ownership in order to advance an anti-Second Amendment agenda that the Attorney General publicly committed to pursue.

The lawsuit goes on to accuse Grewal of conspiring with “anti-Second Amendment Activists” such as Brady, Everytown, and Giffords to use the power of the courts and prosecutors to “name and shame” firearms companies such as Smith & Wesson. It mentions the proxy proposals brought by the Interfaith Center on Corporate Responsibility that would have hamstrung Smith & Wesson.

The complaint then goes on to accuse Grewal of working directly with FACT (Firearms Accountability Counsel Task Force) which is a tool of the “anti-Second Amendment Activists” to circumvent the legislative process:

It is against this backdrop of coordinating with anti-Second Amendment Activists to search for new theories to litigate the firearms industry out of existence, that the Attorney General issued his Subpoena against Smith & Wesson here. To this end, in addition to publicly partnering with anti-Second Amendment Activists, the Attorney General has also hired FACT
counsel, Paul, Weiss, Rifkind, Wharton & Garrison, LLP as his own counsel specifically to pursue firearms manufacturers, further solidifying the anti-gun agenda as his own.

The Attorney General’s actions surrounding the issuance of the Subpoena and initiating the related investigation are forcing Smith & Wesson to expend substantial financial resources, and are threatening to cause irreparable damage with key stakeholders and necessary business partners, and create reputational harm.

The Attorney General’s campaign to silence, intimidate, and deter Smith & Wesson and other Second Amendment advocates, gun manufacturers, and gun owners from exercising their constitutional rights, his consignment of the State’s prosecutorial authority to nongovernmental partisans, and the targeting of protected, disfavored speech, violate numerous provisions of the U.S. Constitution, including the First, Second, Fourth, Fifth, and Fourteenth Amendments.

By circumventing the legislature and the courts and, where possible, invading the board room, the anti-Second Amendment Activists disguise their true motives and avoid exposing their agenda to the robust political debate surrounding firearms in the United States. Their allies then use the issues that they create, to falsely foster with shareholders, business partners and other stakeholders a perception of unmitigated risk. Through these coordinated activities, in which the Attorney General and State of New Jersey now are complicit, the activists have denied and continue to deny Smith & Wesson any meaningful access to the only fora that can stop these illegal actions and protect Smith & Wesson’s rights.

Smith & Wesson lists 11 counts of violations. Among these are violations of the First and Fourteenth Amendment through unlawful viewpoint discrimination, restriction of political speech, and restriction of protected commercial speech. It also alleges violations of the Second and Fourteenth Amendment rights of both the company and its consumers. Finally, it says the company is protected the Protection of Lawful Commerce in Arms Act as well as the Dormant Commerce Clause meaning this is a matter for Federal courts and that state officials like Grewal are encroaching in Federal matters.

The lawsuit seeks both injunctive and declaratory relief as well as attorney fees along with anything else the court might deem “just and proper”.

The attorneys representing Smith & Wesson are all partners in the international law firm of DLA Piper. In one of those delicious bits of irony, this is the same firm where Douglas Emhoff, spouse of presumed VP-elect Kamala Harris, is a partner. Indeed, when you open up the list of the firm’s attorneys by “relevance”, he is the first one listed.

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Safety Recall On Certain S&W M&P Shield EZ Pistols

November 24, 2020 by 3 Comments

Smith & Wesson has issued a safety recall on certain M&P Shield EZ pistols manufactured between March 1, 2020 and October 31, 2020. They have found cracked hammers on two of these pistols which will let them potentially have multiple discharges. The hammers were manufactured by an outside supplier for Smith & Wesson.

Smith & Wesson has identified two M&P Shield EZ Pistols on which the hammers manufactured by our supplier were cracked.  In those firearms, the hammer failed to fully engage the sear, causing the round to fire, cycling the slide, and potentially resulting in multiple discharges without depressing the trigger.  This issue can occur in the following two scenarios:

1. With a loaded magazine in the firearm and the grip safety depressed, releasing the slide (by pulling it back, or releasing the slide stop), may ignite the round as the slide closes, without engaging the trigger.  The condition may occur, regardless of the manual thumb safety position if equipped.  This may also result in multiple discharges.
 

2. With a loaded magazine in the firearm, the grip safety depressed, manual safety in the fire position, slide closed, and a round in the chamber, pulling the trigger will cause the round to fire normally, however as the slide cycles, the next round may be ignited as it is chambered by the hammer failing to fully engage the sear, causing multiple discharges.

In all cases, the firearm will NOT fire unless the grip safety is depressed.  While this condition has been found only in two hammers, and our investigation suggests that these two incidents are very isolated, any unintended discharge of a firearm has the potential to cause injury.  Therefore, we have established this Safety Recall as a precautionary measure to ensure that all M&P Shield EZ Pistols in service meet our design specifications. 

Stop using your M&P® Shield™ EZ pistol until you determine whether it is included in this safety recall, and if so, until it has been inspected and repaired by Smith & Wesson, if necessary.

PRODUCT AFFECTED:

This notice applies ONLY to M&P® Shield™ EZ pistols (including Performance Center® models) manufactured between March 1, 2020 and October 31, 2020, and only to a small percentage of that population. It does NOT apply to all SHIELD™ pistols.  To determine whether your M&P Shield EZ Pistol is affected, check the label on the box to determine date of manufacture (see image below), and if manufacture date is between March 1, 2020 and October 31, 2020 – your pistol may be affected. In this case (or if you are unsure of your date of manufacture), simply go to MPShieldEZrecall.com and input your serial number, or call 888-871-7114 .

Smith & Wesson has set up a special website where you can check your serial number to see if it is one of the impacted pistols. This recall applies to both 9mm and .380 Shield EZ pistols

You can go to the website here.

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Debney Out at AOBC/Smith & Wesson On Eve Of SHOT Show

January 16, 2020 by 1 Comment

James Debney, CEO and President of American Outdoor Brands, was dismissed by the Board of Directors today. He had been slated to be the CEO of the American Outdoor Brands sporting goods segment when the company splits later this year.

From The Guardian

From the news release:

American Outdoor Brands Corporation, today announced that its Board of Directors has named Mark P. Smith and Brian D. Murphy as co-Presidents and co-Chief Executive Officers of American Outdoor Brands Corp., effective immediately.   Smith was most recently President of the Manufacturing Services Division of the company, while Murphy was most recently President of the Outdoor Products & Accessories Division.  In their co-leadership roles, Smith and Murphy succeed James Debney, who has separated as President and Chief Executive Officer and as a Director of the company, following the determination by the Board of Directors that he engaged in conduct inconsistent with a non-financial company policy.

The “inconsistent” conduct was not specified in the release.

Mark Smith was already slated to head the new Smith & Wesson Brands, Inc. after the spin-off.

Brian Murphy is now going to become the CEO and President of American Outdoor Brands, Inc. after the company is split into a sporting goods segment and a firearms segment.

Coming just before SHOT Show starts in less than a week, this is an interesting development.

The new release goes on to quote the Chairman of the Board Barry Monheit as saying:

We appreciate James’ contributions toward the growth and development of our company and its infrastructure.  The Board believes the company is fortunate to have two highly capable and experienced leaders in Mark Smith and Brian Murphy.  Each has played a critical role in the development of our strategic plans, including our intention to establish each business as an independent, publicly traded company.  In addition, Mark and Brian have each demonstrated, through years of leadership and service, their extensive knowledge of and passion for our company, our customers, and our industries.  Their capabilities and objectives position them well to share the combined CEO role as the team completes the separation of our two businesses later in 2020.  The Board has every confidence that they will provide the vision and determination to lead each independent company and its highly respected brand portfolio toward a successful future.

The Wall Street Journal reports that the spokesperson for the company did not provide any details on why Debney was fired beyond what is contained in the news release. Their article also takes note that the firing occurred just days before the SHOT Show was to begin.

Debney earned $3.76 million in compensation for the last year. Most of that compensation was due to bonuses and stock awards on top of his $750,000 salary.

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More On S&W Changes

November 15, 2019 by

American Outdoor Brands Corporation held a shareholder update webcast on the plans to split the company. The webcast last for about 30 minutes if you want to listen to it. It can be found here.

I have embedded the slides for the presentation below. It shows which brands will go to Smith & Wesson and which brands will stay with American Outdoor Brands.

AOBC CEO James Debney acknowledged there had been significant changes in the political, financial, and insurance arenas over the past five years. Based on that, they decided it was in their best interest to separate into two distinct companies. It should be noted that the decision to make the split was in the works for many months. The timing of the announcement which the day after the Supreme Court’s denial of cert to Remington was merely coincidental.

AOBC Spin Off Deck Nov 2019 by jpr9954 on Scribd

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S&W To Become Free-Standing Company

November 13, 2019 by

American Outdoor Brands Corporation announced today that it planned to separate into two publicly traded companies. One company would be focused on firearms (Smith & Wesson) while the other company would be dedicated to outdoor products (American Outdoor Brands). The split would be finalized in the second half of 2020 according to the press release.

Bloomberg reports that the split is part of “an effort that may help it boost values that have flagged under pressure for gun reforms in the U.S.” “Gun reforms” is the euphemism that Bloomberg is using for gun control.

While something like this would have been in the works for months, I find it interesting that the announcement is being made the day after the Supreme Court denied cert to Remington. Bloomberg does make reference to this in their article as well as moves by retailers such as Dick’s and Walmart to limit what firearms and ammunition they sell.

The official rationale for the split is to let each segment concentrate on their separate markets.

The purpose of the spin-off is to enable the management team of each company to focus on its specific strategies, including (1) structuring its business to take advantage of growth opportunities in its specific markets; (2) tailoring its business operation and financial model to its specific long-term strategies; and, (3) aligning its external financial resources, such as stock, access to markets, credit, and insurance factors, with its particular type of business.

AOBC Chair Barry Monheit said, ” There have been significant changes in the political climate as well as the economic, investing, and insurance markets since we embarked upon what we believe have been our very successful diversification efforts.” It is obvious to me that Monheit is speaking about both national and state efforts to impose more restrictions on firearms ownership and possession.

The move by American Outdoor Brands is similar to that of Vista Outdoor. In that case, Vista Outdoor was the firearms-centric portion of the ATK split. While initially the stronger part of the split company, the pull back in firearm and ammunition sales hit it hard. They finally sold off the Savage Arms portion of the business this summer to concentrate on ammunition and the other outdoor portions of their business.

James Debney, the current CEO, will become the CEO of American Outdoor Brands. Mark Smith will become CEO of Smith & Wesson. He is currently the president of the Manufacturing Services Division of AOBC.

The entire press release can be found here. It goes into much more detail on the lower leadership positions, finances, etc.

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Consumer Safety Alert For S&W M&P 15-22

March 11, 2019 by

Smith & Wesson has issued a consumer safety alert for all versions of their M&P 15-22 manufactured before February 1, 2019. They found that in a couple of samples the breech face counter bore depth was not within manufacturing specifications and could cause slam fires.

The full alert sent out on Friday is below:

ESCRIPTION – Please Read This If You Have A M&P15-22 Rimfire Firearm.

PRODUCT AFFECTED:
ALL models of M&P15-22 rifles and pistols manufactured before February 1, 2019.

STOP USING YOUR M&P15-22 UNTIL IT HAS BEEN INSPECTED AND YOUR BOLT REPLACED (IF NECESSARY).
Smith & Wesson has identified two M&P15-22 firearms from
recent production on which the breech face counter bore depth was not
within manufacturing specification. In those firearms, the lack of depth
may allow the bolt, upon closing, to crush the rim of the case, causing
the round to fire, cycling the bolt, and potentially resulting in
multiple discharges without depressing the trigger. This issue can occur
in the following two scenarios:

1) With a loaded magazine in the firearm and the
bolt locked to the rear, depressing the bolt release to allow the bolt
to drop freely may ignite the round as the bolt closes without engaging
the trigger and with the safety selector in either the safe or the fire
position, and may also result in multiple discharges.

2) With a loaded magazine in the firearm, bolt in
the closed position and a round in the chamber and the safety selector
in the fire position, depressing the trigger will cause the round to
fire normally, however as the bolt cycles, the next round may be ignited
by the bolt crushing the rim of the case as it closes, causing multiple
discharges.

We believe that these are isolated incidents, however, any
unintended discharge of a firearm has the potential to cause injury.
Therefore, we have developed this inspection procedure to ensure that
all products in the field are safe to use. We are asking customers to
perform the following procedure and to refrain from using their
M&P15-22 until the bolt has been inspected and replaced as
necessary.

DESCRIPTION OF THE PRODUCT INVOLVED:
The out of specification condition has been found only in bolts
that were recently manufactured. While our investigation suggests that
the incidents are isolated, we have established this inspection
procedure as a precautionary matter to ensure that all M&P15-22
firearms in service meet our design specifications. We are asking
consumers of all M&P15-22 firearms manufactured before February 1,
2019 to inspect their bolt for this condition.

REMEDY/ACTION TO BE TAKEN:
The bolt from your M&P15-22 must be inspected to determine
whether it exhibits the condition identified in this notice. To
determine whether your firearm is affected by this condition, please
inspect your firearm by following the inspection instructions provided
here.
DOWNLOAD INSTRUCTION MANUAL | VIEW INSPECTION VIDEO

CLICK HERE FOR FAQ FACT SHEET
If you are uncomfortable in conducting the bolt inspection
outlined here, or are unsure whether the condition described in this
notice applies to your bolt, please send your bolt to Smith & Wesson
for inspection and replacement if necessary.

If
you want Smith & Wesson to perform the inspection, send your bolt
to Smith & Wesson for free inspection and replacement (if
necessary).

If
you want to perform the bolt inspection yourself, contact us for the
free M&P15-22 BOLT INSPECTION GAUGE Part Number: 3012155 OR place an
ORDER ONLINE to recieve inspection gauge.

If
the bolt from your firearm is affected by the condition outlined in
this notice, please send the bolt to Smith & Wesson. If necessary,
your bolt will be replaced at no cost to you. Your bolt will be returned
as quickly and efficiently as possible. All shipping and replacement
costs will be covered by Smith & Wesson.

To determine if this consumer advisory applies to your M&P15-22 firearm, please utilize our
SERIAL NUMBER VERIFICATION TOOL

Website For More Information: MP15-22SafetyAlert.com
Email: MP15-22SafetyAlert@smith-wesson.com
Customer Service Phone: 1-800-713-0356
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M&P®380 SHIELD™ EZ™ CONSUMER ADVISORY

April 13, 2018 by

Smith & Wesson has issued a consumer advisory for their M&P 380 Shield EZ with a manual thumb safety.

Like any firearm, the function of the M&P®380 Shield™ EZ™ Manual Thumb Safety pistol can be influenced by the type and quality of ammunition used with the pistol. In the case of the M&P 380 Shield EZ Manual Thumb Safety, we have found that in very rare circumstances, ammunition that produces a high level of felt recoil can cause the manual safety to move from the fire to the “safety on” position during firing. Should this occur, you will not be able to fire the next round unless and until the manual safety is reset to the fire position.

At Smith & Wesson, we are committed to designing and producing firearms that meet the highest quality and performance standards. To ensure that every Smith & Wesson handgun meets our standards for reliability and performance, as of April 4, 2018, we have engineered the manual safety so that it will be less susceptible to the influence of ammunition weight, velocity and loads. Any M&P 380 Shield EZ Manual Thumb Safety pistol produced before April 4, is eligible for a no-cost upgrade. To determine if this consumer advisory applies to your pistol, please utilize our serial number verification tool.

If your pistol is subject to this advisory, please call Smith & Wesson at 1-800-331-0852 or email us at MP380EZAdvisory@Smith-Wesson.com. A FedEx return label and shipping instructions to facilitate the return of your M&P 380 Shield EZ pistol will be mailed to you promptly. If you have any questions, you may call 1-800-331-0852 for more information.

WARNING: READ AND FOLLOW THE WARNINGS IN YOUR OWNER’S MANUAL. NEVER USE “PLUS-P” (+P), “PLUS-P-PLUS” (+P+); OR RELOADED AMMUNITION WITH THE M&P 380 EZ. ALWAYS USE FACTORY MANUFACTURED AMMUNITION PRODUCED TO SAAMI SPECIFICATIONS.

You can find the serial number verification tool here. Remember, it is Friday the 13th and you don’t want to take any chances.