A bankruptcy judge approved a $73 million settlement between gunmaker Remington Arms and families of children and adults killed in the 2012 mass shooting at Sandy Hook Elementary School.
The settlement, approved at a hearing Tuesday by Judge Clifton R. Jessup Jr. of the U.S. Bankruptcy Court for the Northern District of Alabama, calls on four of the company’s insurers to make full payouts of $73 million.
Jessup approved the unopposed settlement after finding it won’t have an impact on other tort claims or remaining insurance assets in the case.
The four insurers are Ironshore Specialty Insurance Co., James River Insurance Co., ACE Property and Casualty Insurance Co., and North American Capacity Insurance Company, according to a court filing.
The families of nine of the 26 people slain at the Newtown, Conn. school have said the settlement reveals Remington Arms Co.'s “inner workings” and clears the way for more suits against the company.
Remington’s marketing of its military-style Bushmaster rifle inspired the killer, the families said. Of the 26 people killed, 20 of them were first-grade children.
The company filed the Chapter 11 case, its second, in July 2020, citing trouble attracting capital and potential buyers because of controversy over arms sales. The prior bankruptcy in 2018 failed to reinvigorate the company despite shedding $775 million in debt.
In March 2021, Jessup approved the 200-year old company’s Chapter 11 plan to liquidate and dissolve after selling most of its assets.
The judge’s approval included a provision allowing parties with tort claims against Remington to ask non-bankruptcy courts to determine their claim amounts. Sandy Hook shooting victim families dropped objections to the plan after the company’s agreement to allow the provision.
The case is The case is In re Remington Outdoor Co., Inc., Bankr. N.D. Ala., No. 20-81688, hearing 3/29/22.