By Beth Baumann
Finance company Prestige Capital has filed a lawsuit against Colt’s Manufacturing Company. According to the lawsuit, Colt didn’t provide adequate notice to the plaintiff before halting production of its Expanse Carbine.
Prestige Capital contends the Connecticut gun maker paid some $600,000 after adjusting an agreed upon minimum purchase order, but failed to make the final payment of $500,001.35, according to the complaint filed in a Connecticut federal court last month.
Colt had outsourced the manufacturing of rifles and gun part to Bold Ideas. Bold Ideas was required to produce 6,000 rifles every 3 months unless Colt asked for fewer rifles. If Colt needed less than the agreed upon amount, they had 60 days to make Bold Ideas aware of the change.
“As previously discussed, due to severe contraction in market demand for Expanse rifles, effective immediately, Colt hereby reduces its purchase order to 800 units per month, or a new quarterly rate of 2,400 units,” read a letter from Colt to Bold Ideas.
Bold Ideas had initially sold off all of their accounts to Prestige Capital, including the Colt Manufacturing account.
According to Prestige, Colt violated the agreement by …Read the Rest
Source:: Bearing Arms