Idaho court dismisses Gemtech lawsuit against Smith & Wesson

By Christen Smith

Gemtech sued Smith & Wesson in Idaho federal court for violating an asset purchase agreement signed last year. (Photo: Chris Eger/Guns.com)
A district court in Idaho dismissed a lawsuit against Smith & Wesson this month alleging the gun maker squashed an international sales deal to avoid paying Gemini Technologies a cut worth millions.
U.S. Magistrate Judge Candy Dale said the suppressor manufacturer failed to prove why the case should be argued in Idaho instead of Delaware, as specified in an asset purchase agreement signed by both companies last year — a condition GemTech insists wasn’t binding.
“A fair reading of the entire clause indicates it is mandatory,” Dale said in a 16-page opinion issued May 16. “The language clearly and unambiguously manifests that the state courts of Delaware would be the exclusive forum for a case arising out of the (Asset Purchase Agreement) and the related Escrow Agreement.”
GemTech sued Smith & Wesson parent company American Outdoor Brands in January, alleging the gun maker violated a $10 million acquisition deal finalized in August 2017. In the agreement, Smith & Wesson promised the company a two-part escrow payment and a portion of any product sales proceeds over the next three years, not to exceed $17.1 million.
Gemtech

Source: Guns.com