A federal judge in Nevada has dismissed a lawsuit brought by a group of nuns accusing Smith & Wesson of violating its fiduciary duty to shareholders through the manufacture and sale of AR-15-style rifles. The decision marks the second time similar claims have been rejected in court.

The lawsuit was filed by several religious groups, including the Adrian Dominican Sisters, Sisters of Bon Secours USA, Sisters of St. Francis of Philadelphia, and Sisters of the Holy Names of Jesus & Mary. Plaintiffs argued that company leadership knowingly exposed Smith & Wesson to legal and financial risk by continuing to produce and market certain firearms.

The case follows a prior dismissal in 2024 by a Nevada state court, where similar claims were thrown out. The renewed federal case again failed to advance, reinforcing earlier rulings against the plaintiffs’ arguments.

In the latest decision, U.S. District Judge Gloria M. Navarro dismissed the complaint but allowed the plaintiffs 21 days to file an amended version. However, the court imposed a significant condition, requiring the group to post a $500,000 security bond within 14 days if they choose to proceed.

The Firearms Policy Coalition noted that the bond requirement presents a major hurdle, pointing out that the plaintiffs had previously attempted to avoid such a requirement by shifting their case from state to federal court.

The ruling represents another legal victory for Smith & Wesson as it continues to defend its business practices against challenges from activist groups seeking to impose liability over firearm-related issues.