Case Information: Wal-Mart Stores, Inc. v. Trinity Wall Street, No. 14-4764 (3d Cir. Filed Feb. 11, 2015)
At Issue: Wal-Mart, the nation’s largest retailer, sells AR-15s and other similar assault rifles, which come equipped with high capacity magazines. The Trinity shareholder proposal at issue in this case would obligate the Wal-Mart Board to oversee the creation and implementation of standards for when to sell products raising public safety and other specified concerns. The proposal was motivated in part by the tragic shooting at Newtown and Trinity’s resultant desire to see Wal-Mart exercise more oversight of products with special business risks, including assault rifles and high-capacity magazines. While the resolution would not ban the sale of any product, it would require Wal-Mart to at least consider the implications of selling assault rifles equipped with high-capacity magazines. The district court ruled that the proposal could not be excluded from proxy materials sent by Wal-Mart to its shareholders for their consideration. Wal-Mart appealed this decision to the Third Circuit.
The Law Center’s Brief: The amicus brief supports Trinity by arguing that the district court’s opinion is consistent with SEC rules and guidance regarding the submission of shareholder proposals, and the District Court properly concluded that the Trinity proposal involves a significant policy issue appropriate for shareholder consideration. The brief emphasizes that, among the hundreds of thousands of items Wal-Mart sells, assault rifles and high-capacity magazines stand apart because of their capacity to kill large numbers of people in a very short period of time. On average, shooters who use assault weapons or large capacity magazines in mass shootings shoot 151% more people and kill 63% more people than those who do not.