Supreme Court upholds restriction on large-capacity firearm magazines

Supreme Court upholds restriction on large-capacity firearm magazines

The Supreme Court, in a significant decision, declined to hear challenges to Maryland's ban on assault-style weapons and Rhode Island's ban on high-capacity magazines. The ruling, handed down on June 2, 2025, preserves these restrictions for now, leaving in place the Fourth Circuit U.S. Court of Appeals' ruling that these laws are constitutional [2].

Justices Clarence Thomas, Samuel Alito, and Neil Gorsuch dissented from the decision, arguing that the court should address the issue of whether the government can ban the most popular rifle in America, the AR-15, which is legal in 41 of the 50 states [2]. Justice Brett Kavanaugh, while agreeing with the court's decision to let the Maryland law stand, indicated that the high court may revisit the AR-15 issue in the next term or two [2].

The decision comes amid a broader debate on gun control and the Second Amendment. While the Supreme Court's conservative majority has issued rulings expanding gun owners' rights, recent decisions have shown support for longstanding restrictions. In June 2024, the high court upheld a ban on firearm purchases and possession by Americans under domestic violence restraining orders. Earlier this year, the court also upheld federal regulations targeting ghost guns [2].

The ruling may have implications for the firearm industry, particularly Sturm, Ruger & Company (NYSE: RGR) and Smith & Wesson Brands (NASDAQ: SWBI). Analysts do not expect the Supreme Court's decision to have a significant impact on these stocks in the near term [1]. However, the potential future reconsideration of the AR-15 ban could influence investor sentiment.

The decision also underscores the ongoing legal battles over gun control. Challenges to other state bans on assault-style weapons and high-capacity magazines remain pending in lower courts. The Supreme Court's recent decisions have added complexity to these cases, as lower courts struggle to apply the high court's standards for gun restrictions [4].

References:
[1] https://seekingalpha.com/news/4454380-the-supreme-court-wont-hear-a-challenge-to-the-assault-weapons-ban-for-now
[2] https://abcnews.go.com/Politics/supreme-court-allows-ar-15-ban-maryland/story?id=122417400
[4] https://www.usatoday.com/story/news/politics/2025/06/02/supreme-court-assault-weapons-high-capacity-magazine-bans/82879343007/