On March 17, 2000, The Legal Action Project participated in the announcement of the first settlement agreement reached between a gun manufacturer and some of the cities and counties suing the gun industry. In this agreement, Smith & Wesson Corp. agreed to make important changes in the way it designs, markets, and distributes guns. The cities and counties agreeing to the settlement included Atlanta, Berkeley, Bridgeport, Camden, Detroit, Gary, Inglewood, Los Angeles, Miami-Dade, San Francisco, St. Louis, and Washington, D.C. Other cities and counties chose not to join the agreement and to continue pursuing their claims against Smith & Wesson. The other governmental parties to the lawsuit were the U.S. Department of the Treasury, the U.S. Department of Housing and Urban Development, and the states of Connecticut and New York, each of which agreed to forego filing a lawsuit against Smith & Wesson.

President Clinton: "This agreement is a major victory for America's families. It says that gun makers can – and will – share in the responsibility to keep their products out of the wrong hands. And it says that gun makers can – and will – make their guns much safer without infringing on anyone's rights."

Legal Action Project director Dennis Henigan: "This settlement agreement is a breakthrough for public safety. The largest American handgun manufacturer has now acknowledged its responsibility to make safer guns to protect our children and to stem the flow of guns to the criminal market. The cities brought these lawsuits to fundamentally change the way guns are made and sold. This agreement is an important first step toward accomplishing that goal. This agreement will save lives"

The Key Terms of the Agreement

The agreement is a significant step toward comprehensive reform of the gun industry.

Distribution: The agreement binds Smith & Wesson to changes in the way its guns are distributed, including:

• Smith & Wesson will now sell only to authorized distributors and authorized dealers who adhere to a stringent code of conduct;
• Smith & Wesson guns will not be released to purchasers until they have cleared a NICS background check — even if that check takes longer than the current legal standard 3 business days;
• Smith & Wesson dealers selling multiple guns to a purchaser will permit the buyer to take only one gun immediately, and will wait 14 days before providing the others;
• These dealers will not sell Smith & Wesson products at any gun show unless all sales by any seller at the gun show are conducted only upon completion of a background check;
• These dealers will not sell any high capacity magazines or assault weapons, including those legal under "grandfather" provisions of statutes banning manufacture of these items;
• These dealers will not sell Smith & Wesson products to anyone who has not taken a certified firearms safety course or passed a safety exam;
• These dealers must implement specific security procedures to prevent gun thefts;
• These dealers must not allow children under 18 access to gun stores or sections of stores where guns are sold unless accompanied by an adult;
• These dealers must maintain an electronic record of crime gun traces and report them to the manufacturer on a monthly basis;
• These dealers' employees must attend annual training and pass a comprehensive exam on how to recognize suspect sales and how to promote safe handling and storage; and
• Smith & Wesson will terminate sales to any dealer who sells a disproportionate number of guns used in crime.

Designs: The agreement also requires changes in the way Smith & Wesson designs guns, including:

• All guns, including long guns, will be shipped with external child safety locks;
• Within one year, every firearm will be designed so that it cannot be readily operated by a child under the age of 6;
• Within one year, all pistols will have a chamber loaded indicator;
• Within one year, magazine disconnect safeties must be available on all pistols for customers who want this feature;
• Within two years, all pistols will be manufactured with internal locks;
• Within three years, all new gun designs will include "personalized" or "smart gun" technology, preventing any unauthorized person from using the gun, and two percent of the company's gross revenues will be devoted to the development of this technology;
• All guns must pass performance tests to ensure safety and quality, and drop tests to prevent certain accidental firings;
• Smith & Wesson guns designed after 2000 will no longer accept pre-assault-weapon-ban magazines; and
• Every handgun will be designed with a second, hidden serial number to assist in crime gun tracking.

Click here to read Jon Lowy's article "Pushing the Envelope: Smith & Wesson Settlement with Cities and Counties Suing the Gun Industry."