KANSAS CITY, Mo. — A Nevada-based gun manufacturer filed for bankruptcy after Kansas City sued the company over weapons trafficking last month. KCUR-FM reports that Jimenez Arms filed for Chapter 7 bankruptcy on Feb. 10.
It's bankruptcy petition listed assets of less than $50,000 and outstanding liabilities surpassing $1 million. This could pose a challenge for the city should it successfully recover compensation in its lawsuit.
It alleges the gun trafficking created a public nuisance in Kansas City, which has one of America's highest homicide rates.
Mayor Quinton Lucas says it's the first such lawsuit filed against the gun industry in more than 10 years.
