STATEMENT REGARDING LITIGATION WITH KE ARMS, LLC

            It has come to our attention that individuals involved with KE Arms, LLC (“KEA”) and InRangeTV are spreading misinformation about pending litigation between GWACS Armory, LLC (“Armory”), KEA, Russell Phagan, and others. Armory will try this case in a court of law and not in the court of public opinion. Therefore, we will not be making additional statements at this time. However, due to the threats we have received as a result of the videos and articles published about Armory and the litigation, we will state as follows:

1. Armory is a licensed firearms manufacturer that sells firearms and has sold thousands of CAV-15 MKIIs.
2. Armory and the many veterans in our company are ardent supporters of the 2^nd Amendment.
3. Prior to Armory filing suit against KEA in Oklahoma, KEA sued Armory in Arizona. The federal court in Arizona dismissed all but one of KEA’s claims and transferred the case to Oklahoma. The fact KEA sued Armory first is left out of the articles and videos attempting to claim Armory filed this case to somehow diminish gun rights (which is absolutely false).
4. Contrary to the claims in Karl Kasarda’s video, Armory is neither claiming that the A1 length of pull nor the use of a trapdoor buttstock is its intellectual property.
5. When Armory purchased the CAV-15 product line and all intellectual property (“IP”) related thereto from Russell Phagan’s company in 2011, Phagan represented to us that his company exclusively owned the CAV-15 tooling and design, and that the IP package included his know how and all of the information he had on actually producing CAV-15 receivers.
6. Armory had designed new features for the next generations of the CAV-15 and disclosed those features, among other things, to KEA, Phagan and Brownells pursuant to non-disclosure agreements (“NDAs”). Those features are included in the products being sold by KEA.

When Armory discovered KEA and Phagan were producing products containing elements that existed only in the CAD design files Armory purchased from Phagan’s company in 2011, as well as features disclosed under NDAs, it sent a cease-and-desist demand to KEA and Brownells (who was marketing KEA’s products and was also subject to an NDA). Six days later KEA sued Armory in Arizona. This case is about protecting Armory’s rights to its trade secrets and IP in order to create and sell new AR-15 products. This case has nothing to do with gun control, as others have ridiculously claimed. Armory may make additional statements at the conclusion of this litigation, but until then we will proceed with the litigation in an honest, professional, and ethical manner.