The lawsuit, filed by the Mexican government against seven American manufacturers and a distributor in 2021, alleged that the companies "deliberately facilitate gun trafficking" into Mexico, according to the Jan. 22 ruling issued by the U.S. Court of Appeals for the 1st Circuit.

The complaint was initially filed at the federal district court in Massachusetts, which dismissed the lawsuit after deciding that U.S. gun companies were protected by the Protection of Lawful Commerce in Arms Act (PLCAA) against Mexican claims.

The PLCAA prohibits certain lawsuits against gun manufacturers and sellers in U.S. federal and state courts. The appeals court agreed that "PLCAA's limitations on the types of lawsuits that may be maintained in the United States apply to lawsuits initiated by foreign governments for harm suffered outside the United States."