In large part that's because the settlement covers such a huge time period-nearly 70 years since the first of the guns were produced.Īnother factor likely to limit the cost: The agreement specifically leaves out some of Remington's most loyal customers-law enforcement and the military. That amount is equivalent to roughly half the total assets of the firm's parent company, Remington Outdoors, which in turn is owned by private equity firm Cerberus Capital Management.īut the ultimate cost is unlikely to come anywhere close to $487 million. If the owners of all 7.5 million guns were to file claims, the court filings noted, it would cost Remington more than $487 million. "We are not stunned by the numbers now, but do anticipate they will grow significantly over time."Īttorneys for Remington did not respond to multiple requests for comment.
"Normally we see a quick start, then a lull, then a gradual build up," he told CNBC in an email. An attorney for the plaintiffs, Mark Lanier, said he expects many more gun owners ultimately to take advantage of the settlement, since claims "typically come in waves." The filing noted that the formal claims process does not begin until final approval of the settlement, which is not expected before December. Nonetheless, the parties said reaction to the settlement has been "overwhelmingly positive," with only two objections filed as of Aug.14. District Court in Kansas City, Missouri.īut in a separate filing that day, the plaintiffs and Remington jointly disclosed that while the agreement covers as many as 7.5 million guns, only 2,237 claims had been filed since forms became available in May, and only 5,390 people had called a toll-free hotline for more information. "The proposed settlement provides a substantial, certain recovery to a nationwide class, against a formidable array of legal, factual, and procedural obstacles," the plaintiffs' attorneys wrote in a Sept.
The attorneys from 10 law firms in nine states are seeking $12.5 million in fees and expenses from Remington, the maximum amount allowed under the settlement. The company also agreed to provide product vouchers to owners of guns that are too old to be retrofitted. Remington has always denied that there was any defect and maintains the guns are safe, but under the settlement the company agreed late last year to replace the trigger mechanisms on the guns in question free of charge and to reimburse owners who already had their triggers replaced. The 2010 documentary " Remington under fire: A CNBC investigation" explored allegations that a design defect made the guns susceptible to firing without the trigger being pulled, resulting in dozens of deaths and injuries.
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