Background:

Our regular readers may remember this article back in May of 2018 about PRIME Ammo’s new 6mm Creedmoor offering. Cool, but not huge news. The bigger news is why the new cartridge never made it to market. A lot of us would have just written it off as typical gun industry “vaporware”.  Not the case though: in fact this ammunition actually exists and has been (according to PRIME) paid for and produced en mass. However, it has allegedly never been delivered to PRIME. This is one of the complaints in PRIME Ammo’s lawsuit against RUAG Ammotec. Here is a link to the counter-suit PRIME has filed against RUAG Ammotec (https://www.primeammo.com/uploads/041519-Answer-to-Amended-Complaint.pdf). It doesn’t take a lawyer to recognize the term ‘counterclaim’. RUAG first filed a claim again Citizens Amunition LLC (PRIME Ammo) in November 2018 (https://www.primeammo.com/uploads/11_19_18-Served-Amended-RUAG-Ammotec-Complaint-RUAG-vs-Ctiizens.pdf).

RUAG’s Position

RUAG’s official statement as posted on the Norma’s (A RUAG company) facebook page:

Taken directly for the Norma facebook page

Official Statement / Media release RUAG Ammotec:

RUAG Takes Legal Action Against PRIME Ammunition for Outstanding Debt on More than 1.2 Million Rounds

Tampa, USA, April 17, 2019. RUAG Ammotec has taken contractually-defined recourse on Citizens Ammunition, LLC. RUAG has been loading the PRIME brand ammunition for several years. Well over a year ago Citizens stopped paying RUAG for the ammunition it sold and has refused to make any additional payments on the debt owed. This has forced RUAG to exercise its contractual rights through litigation and product sales.

PRIME Ammunition is delinquent on payments for more than 1.2 million rounds of ammunition sold and received. PRIME’s practice of selling and receiving product but refusing to pay caused RUAG to act to protect its interests. Any statements, claims or representations to the contrary are simply false.

RUAG’s dedication to quality, manufacturing excellence and deep product knowledge has supplied PRIME Ammunition and its fans and supporters with ammunition that stands out from the competition. Similarly, RUAG Ammotec supplies world class components, manufacturing resources and loaded ammunition to leading brands and companies around the world. RUAG Ammotec factory loads the most calibers of ammunition in the world and has production capabilities in five countries. The US market receives top ammunition options for anyone who hunts, shoots, competes, trains, protects, serves or defends from RUAG’s family of brands and products.

RUAG is confident that this matter will be resolved in its favour. RUAG looks forward to continuing to deliver exciting new products and high-quality ammunition to hunters and shooters across the country and throughout the world.

PRIME’s Position

Jim O’Shaughnessy CEO and Founder of PRIME Ammunition has been a little more vocal. Essentially he is claiming he had an agreement with RUAG Ammotec which they did not fulfil, in an effort to put PRIME “out-of-business”.  It appears to be a much longer story than what is being reported; for all of the details consult the links listed below. 

PRIME appear to be mobilising social media with Patriot Valley Arms llaunching a T-shirt and sharing links to their legal fund. O’Shaughnessy was also interviewed on Frank Gali’s The Everyday Sniper podcast on the 16 April.

Analysis:

RUAG v. Prime and Prime v. RUAG is undeniably a set of complicated cases. It is also the responsibility of any credible news outlet to be impartial. Here are the basics from my perspective:

Jim O’Shaughnessy built a brand with PRIME ammunition. PRIME did not manufacture their own ammunition. They did, however, provide the load specifications to RUAG Ammotec, which was their sole provider. PRIME’s brand became very popular amongst long-range shooters because of excellent customer service, a quality product and their support of youth and female shooters. Mr. O’Shaughnessy has been very outspoken and presumably transparent, going so far as offering the company’s financial logs. He has also made the legal documents publicly available on PRIME’s website. 

Since Mr. O’Shaughnessy’s announcement on 15 April 15, there has been an enormous amount of buzz within the long range shooting community. Most of it in support of PRIME, to the extent that PRIME has even started a crowdfunding page for donations towards their legal fees. Patriot Valley Arms, a precision rifle manufacturer, went so far as to release a T-shirt (pictured below). 

T-Shirt created to support PRIME with legal fees

Even with the crowdsourced support, PRIME is most likely out-resourced by RUAG Ammotec which is owned by the Swiss government. RUAG’s only comment on the issue comes from their above statement and we are unlikely to hear more from them until the matter is solved. This will most likely be drawn out ordeal in the courts and TFB will continue update on the proceedings as information becomes available.