Brazil-based handgun maker Forjas Taurus SA has agreed to a $39 million settlement in a class action lawsuit alleging some of the company’s most popular semi-automatic handguns can discharge when dropped and have a defective safety that allows the gun to fire even when it’s engaged.According to court documents filed May 15 in a U.S. District Court in Florida, the company has agreed to pay up to $30 million to owners of nine separate handgun models who opt to send their pistols back, with owners receiving anywhere from $150 to $200 for their pistols depending on how many choose that option.
I would risk and say that this settlement took a nice bite out of the already collapsing Taurus Profit/Loss ledger. And unfortunately, they deserve it because they keep ignoring they are not selling to a captive market but one that has choices and it is rather picky.
The pisser is that there is a great brain trust within Taurus. Yes they come up with some weird stuff, but thinking outside the box is always something good in a competitive market. But no matter how imaginative your design team can be if you have the proverbial drunken monkeys making the parts and assembling them.
At any American company, this much money going out would cause the dismissal of some people in management and a boatload at the line production. However, I don’t see this happening it in Brazil where the socialists unions would raise hell and paralyze all the manufacturing activities (They also have a tool & die plant plus construction.)
They good news is they are not yet Colt in economic terms, the bad news is that they are now below Hi-Point and Jimenez in reliability and craftsmanship.