City of Philadelphia Holds Gun Shops Accountable in Straw Purchasing Litigation

Two gun shop operators agree to no longer sell guns while third shop files for bankruptcy on eve of trial, City stands to recover up to $11.9 Million in damages from insurer

PHILADELPHIA - Today, the City of Philadelphia, along with co-counsel Everytown Law and Herbert Smith Freehills Kramer, has announced a package of settlement agreements to resolve litigation against two of three gun shop operators named in lawsuit that were alleged to have supplied the criminal gun market through illegal firearm sales. Per the settlement, the owners of Franks Gun Shop and Shooting Range LLC and WRT Management, Inc., formerly known as Tanner's Sports Center, have agreed not to engage in the business of selling firearms in the future, and both businesses have agreed that they will not seek to obtain federal firearms licenses in the future. Mad Minute Enterprises, LLC d/b/a Delia's Gun Shop, has filed for bankruptcy and the storefront is now under new ownership and management.

The 2023 complaint alleged that the businesses fueled the gun violence crisis in Philadelphia by routinely and recklessly facilitating straw purchasing transactions - when a buyer purchases firearms with the intention of illegally transferring them to someone else or supplying the criminal gun market. Guns sold by each vendor named in the lawsuit have been recovered in Philadelphia in connection to crimes such as homicide, home invasion, robbery, narcotics possession and distribution, and vehicle theft, and are often found in the possession of minors and other individuals prohibited from carrying firearms or buying a gun.

While the defendant gun shop operators have no remaining assets, the settlements grant the City of Philadelphia the ability to recover monetary damages from the insurer for defendant WRT Management up to $11.9M.

"These gun shop owners have proven over time that they are unable to conduct business in compliance with local, state, and federal firearm laws. We are proud that the City's lawsuit led to this resolution, with the named defendants to cease operations entirely as a result," said Renee Garcia, City Solicitor. "From manufacturing to sales of firearms, there are laws that need to be followed. Any person or company that is not complying with those laws should consider themselves put on notice, as we will continue to take every legal action possible against those that contribute to the crisis of gun violence in our City."

"The gun shops at the center of this lawsuit have put weapons into the hands of criminals, children, and people who should not have access to a firearm. I feel confident that our residents are now safer as a result of these settlements and the departure of these negligent businesses from the industry," said Mayor Cherelle L. Parker. "My Administration is grateful for this outcome and will continue investing in our community-based gun violence prevention and healing initiatives."

"These settlements are the direct result of the mounting evidence uncovered throughout this litigation, which demonstrated a clear pattern of misconduct that contributed to Philadelphia's gun violence epidemic," said Alla Lefkowitz, Managing Director of Affirmative Litigation for Everytown Law. "Straw purchasing is a major contributor to gun crime and gun dealers have a legal responsibility not to ignore suspicious purchasing behaviors that indicate illegal gun trafficking or straw purchasing."

The exact terms of settlement vary per agreement with each named Defendant:

Frank's Gun Shop and Shooting Range LLC

• While the shop's federal firearms was revoked in 2024, the settlement agreement prevents Frank's Gun Shop and its owners from seeking or obtaining another federal firearms license.

WRT Management, Inc. d/b/a Tanner's Sports Center

• The owner of WRT Management, Inc. has agreed not to participate in the firearms business again, and not to seek a federal firearms license for the company in the future.

• WRT has assigned all of its rights to insurance coverage to the City, up to an amount of $11.9 Million.

In addition, Delia's Gun Shop filed for Chapter 7 bankruptcy in the United States Bankruptcy Court of the Eastern District of Pennsylvania on May 1, 2026. The case against it was set to head to trial later this month.