The Chapter 11 bankruptcy of gun manufacturer Remington filed late last month has thrown yet another wrench into a landmark class-action settlement involving allegedly defective rifles that were the subject of a 2010 CNBC investigation.



A federal appeals panel in Kansas City is considering the settlement, in which Remington agreed to replace the triggers on millions of guns, including the iconic Model 700 rifle and a dozen other firearms with similar designs. While Remington continues to maintain the guns are safe, class-action plaintiffs claimed the guns are prone to firing without the trigger being pulled. With the case bogged down in court, the trigger replacement program, first announced in 2014, has been on hold.

Now, Remington is seeking to halt the class-action case entirely, at least temporarily, under a provision in federal bankruptcy law that automatically stays outside litigation while a bankruptcy case is pending.

"As a result of the bankruptcy filing, this appeal is subject to the automatic stay," wrote Remington attorney John Sherk in a filing last week with the 8th U.S. Circuit Court of Appeals in Kansas City.

The court has given the parties two weeks to weigh in on the issue.

A federal judge in Kansas City approved the class-action settlement last year, but a pair of Remington rifle owners immediately appealed the ruling. Richard Denney and Lewis Frost accused the company of deliberately downplaying the risks from the guns and failing to properly notify the public of the settlement in order to keep the number of claims low. Remington has denied the allegations, and plaintiffs' attorneys — who stand to collect $12.5 million in fees — have defended the settlement as fair.