Wyoming-based premium rifle maker Gunwerks had been doing business with Wells Fargo for years. When the bank recently tried to change the collateral valuation basis underlying the company’s working capital loan, lender and borrower got into a dispute. That dispute escalated over time and resulted in Wells Fargo filing suit against Gunwerks earlier this week.
The filing of the suit was picked up by a Casper radio station which ran a story parroting a number of claims asserted by Wells in the lawsuit, namely that Gunwerks wasn’t paying vendors and was delinquent in their sales tax payments. That story created doubt about Gunwerks financial viability and concern among the company’s vendors and customers.
TTAG talked to Gunwerks yesterday. They told us that not only were the claims about delinquent taxes and vendor payments in the Wells Fargo suit false, but the company is having a record sales year and has the cash on hand to pay the loan off. The suit, Gunwerks tells us, was a hardball move intended to strongarm the company during some heated negotiations.
Last night Gunwerks CEO Aaron Davidson issued this statement announcing the settlement of the lawsuit with the bank:
The reports of Gunwerks’ demise are completely false. In fact, we’re crushing it! So far, 2020 has set records for sales performance and profitability, and it only gets better from here!
This week’s report of Wells Fargo filing a lawsuit has gotten a lot of attention. The bottom line is, the litigation has been settled, the entirety of our Wells Fargo operating loan has been paid off, and it is business as usual for Gunwerks.
The Wells Fargo narrative of Gunwerks’ financial distress was untrue. The dispute was never about Gunwerks’ financial condition or late payments, but about a difference of opinion on asset valuation. Within days of filing the suit, it has been settled and the case will be dismissed immediately.
Most of the stories circulating around the social media landscape are just wrong! Here are two good examples: In Wells Fargo’s narrative complaint filed in federal district court, they assert that Gunwerks was delinquent on sales tax payments. This is not true now and has never been true (Check here for a list of current delinquents in WY). They also allege that Gunwerks is late paying vendors. Again, this is untrue. We pride ourselves in dealing fairly with our vendors.
Unfortunately, despite our numerous good faith attempts to resolve the issues with Wells Fargo, the bank chose to file a lawsuit, which has now been settled. Fortunately, we had the resources to pay off the credit line within two business days of Wells Fargo filing suit. Our customers have really supported us this year with record sales. We’re on track to have our best performing year on record.
In 2020 Gunwerks will be announcing several new and innovative products that have been in development the past several years. Keep an eye out for an entirely new, next-gen rifle system engineered from the ground up, at least three more Skunkwerks projects, and new optics products and ballistic solutions in the Revic lineup.
The damage to Gunwerks’ reputation from Wells Fargo’s lawsuit will take quite a while to overcome, but with our team and a foundation of innovation and product quality, we see this as a minor incident. We’ve never been more excited about our business!
Aaron Davidson, CEO Gunwerks
Not a lawyer, so maybe a dumb question. Couldn’t Gunwerks countersuit WF for damages and legal fees?
P.S. Gunwerks makes some nice rifles. I was able to shoot one at the 2016 Texas Firearms Festival.
You should consult pwrserge. He’s a ‘lawyer’.
PwrSerge is just the name of the Character created by TTAG writers to drum up traffic. Currently they are working on a pilot to sell to NETFLIX featuring PwrSerge and his early life. They are going to try to portray him as a Ukranian version of Jamie from the NETFLIX show OUTLANDER. Debora Messing is slated to play his early romance. He’s not real.
“He’s not real.”
He’s real, you’re just pissed-off he pimp-slapped your ass into next week… 😉
Not upset at all. He doesn’t bother me. He’s just there. Actually we have a lot of common ground including a hate for the left, most especially the Soviet version.
He’s real. Like Capt. Tom Tuttle from MASH
They’d have to show actual damage was suffered, and WF has lawyers already on the payroll. Not worth it.
…at which Ivy League law school did you matriculate?
I dunno, maybe you should ask gunwerks what law school their lawyers went to, as they were the ones that engaged in a settlement.
“Couldn’t Gunwerks countersuit WF for damages and legal fees?”
I suppose they *could*, but they likely won’t, since it looks like they would have to go after the reporter or newspaper that published it..
I watched the 11 min. video. They “settled” the lawsuit by folding to WF’s demands. I’m at a bit of a loss to see the ‘victory’ there…
So they paid off the loan outright? Now WF will be missing out on all that sweet interest money. Guess they should have left well enough alone.
Definitely, GunWerks should sue WF for slander and false accusations. Then, after winning their case, GunWerks should proudly announce their hiring oa a new bank to handle their business due to thr unreliability of WF
Strikes me as that proverbial Good Question. I wonder as to what the answer might be.
Wells Fargo could not have a WORSE reputation than oh just about any bank. Anyone go to prison over their fraud? Anyone?!? I wish Gunwerks the best…
I wish I could buy a rifle from Gunwerks. From my experience Wells Fargo is a horrible company to deal with. I may buy a cleaning rod and another hat from them to help keep them going, since a $10k rifle is out of my reach.
I looked at their ammo page.
They want 85 dollars for one box of 20 rounds of 6.5 Creedmoor.
$4.25 per round…
I think that’s their homing ammo, watching the bullet make midcourse corrections is worth the price of admission. NOT!
Oh yeah, and for some reason they have bought and sold and bought again my mortgage several times over in the last 15 years. There ought to be a law that says a bank cannot buy your mortgage from another bank unless you agree and sign-off on it.
With a law like that, dirty thieving scum like Wells Fargo wouldn’t last long!
You already signed away that option on one of the 40 or so documents executed with a typical mortgage. Some local banks actually hold on to them, fairly rare though.
When I took out my mortgage I paid .25% extra to exercise an option that forbid them from selling it. Turns they were bought and my mortgage went with them.
Last time I bought a house:
This is the form that says we sell 100% of our mortgages.
This is the form that says we already sold it and to whom.
No this is great. This means that there won’t be any payments in transit during the sale.
Fake Fargo, scumbags of the worst kind. I have nothing but disdain for them.
They sure make some fine looking bolt actions. Couldn’t imagine being able to afford one, but good to hear a custom gunmaker is raking it in.
$4000 and up! And a blackpowder model from $9000 and up!
A $5k rifle? Ah, no. Too rich for my blood.
Wells Fargo is a bad actor, they have stolen millions of dollars from citizens and suffered very little consequence.
“The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent. News of the fraud became widely known in late 2016 after various regulatory bodies, including the Consumer Financial Protection Bureau (CFPB), fined the company a combined US$185 million as a result of the illegal activity. The company has faced and faces additional civil and criminal suits reaching an estimated $2.7 billion by the end of 2018.”
i’m grateful to the Democrats for creating the consumer financial protection bureau in 2010, they’re one of the few oversight agencies actually holding Wells Fargo accountable for their fraud and corruption.
“The CFPB’s creation was authorized by the Dodd–Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007–08 and the subsequent Great Recession. The CFPB’s status as an independent agency has been challenged in court, and is currently under review by the United States Supreme Court.”
Wells Fargo has a lot of balls suing anyone,
They took a lot of money from my account a while back, & they lost a class action lawsuit, I got reimbursed money’s, Don’t ever do business with them. If you do keep a close eye on your accounts.
People I know today are still having problems with them.
Sounds like a defamation suit in the making.
Sounds like Gunwerks has grounds for a suit against Wells Fargo and KTWG radio is indeed, as is claimed in this article, Gunwerks reputation has been negatively impacted.
Didn’t Black Bart target Wells Fargo for robberies back in the day because they had treated him badly?
No Bolivar, he robbed them because they had a
sign which said “no guns allowed.”
If the company name was Funwerks WF would have skated on by. Until some democrats are hung out to dry for attempting to overthrow a duly elected POTUS with libel and slander consider libel and slander the norm for getting those prone to support the POTUS.
Well you know, it was the Democrats that passed the financial regulation law that is holding Wells Fargo accountable.
You may want to check out the Dodd Frank Bill and the CFPB, the only agency to hold Wells Fargo accountable for their fraud and deception.
No, they’re not.
The “accountability” they’re facing is the equivalent of a local cop (who I happen to hang out with on the weekend) fining me 10 cents plus a stick of gum. It’s just legal theater played to convince the rubes that someone in DC is actually on their side.
“News of the fraud became widely known in late 2016 after various regulatory bodies, including the Consumer Financial Protection Bureau (CFPB), fined the company a combined US$185 million as a result of the illegal activity. The company has faced and faces additional civil and criminal suits reaching an estimated $2.7 billion by the end of 2018.”
It’s not just Wells Fargo, I have had money disappear from accounts in 3 different banks, just pissed! we know why they are so Anti gun they are trying to avoid street justice, with the Democrats Destroying our country stand by becaue banks will get worse
BofA is bad too. What alternative do I have? Navy FCU?
BOA, are dirtballs as well. Another problem, since the great govcession
of 2008, bank numbers have decline by a whopping 40%.
BOA, should change back to their old name – Bank of Italy.
You can try smaller credit unions. Or more regional banks, at least.
The big publicly traded banks seem to all be happy to screw over their ‘customers’ because the real customers are their shareholders.
I’ve been banking with NFCU since ’05. Only ever had one fraudster be able to clone my debit card and they shut them down most ricky tick and refunded me my money the next business day. Happened over a decade ago and nary a problem since. Credit unions are a little better to deal with.
Back in the 70’s we banked with Wells Fargo and they bounced a check of ours for the service charge.
Ned-less to say we moved our money to a local bank. And never banked with a large name bank ever again
Gunwerk’s should stay with local banks!!
I’ve never had dealings with Gunwerks, so I couldn’t tell you much about them. I have had dealings with Wells Fargo, and I can tell you they have the ethics of a brain-damaged rattlesnake. Believe nothing they say.
Dodd-Frank has done more to drive small and local banks out of business or allow large (inter)national banks to buy them out than anything since banking laws were instituted.
This one case of the Consumer Financial Protection Bureau (CFPB) doing good doesn’t make up for the mess Dodd-Frank has created, or the other damage the CFPB has done.
For Gunwerks to sue, they would have to prove malice & aforethought on the parties involved. And then if they won, that they suffered monetary damages as a result to get any compensation. At some point it becomes throwing good money after bad.
If their year is going as well as they say, it would be real difficult to demonstrate any damages.
They could have sold 3 rifles at their stupid prices and payed off WF.
They make nice stuff but they are way to proud of it. None of their rifles are revolutionary. They are barely unique and as accurate as any higher end factory offering.
Past that, screw WF!