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Teacher Pension Fund Review Causes Sale of Firearms Conglomerate

December 18, 2012  | 

Logo via Cerberus.
Logo via Cerberus.

Cerberus Capital Management announced plans to sell its stake in firearms conglomerate Freedom Group after one of the company's guns was used in the Connecticut school rampage.

Cerberus made the decision hours after one of its largest investors, the California teachers' pension fund, said it was reviewing its relationship with the firm, reports the New York Times.

Cerberus is a New York-based private-equity firm owned by billionaire financier Stephen Feinberg, whose father lives in Newtown, Conn., where Adam Lanza killed 26 students and staff at Sandy Hook Elementary School on Friday. Lanza used a Bushmaster AR rifle in the attack.

In a statement posted on its website, Cerberus offered an explanation for the decision. Here's an excerpt:

"It is apparent that the Sandy Hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedented level.  The debate essentially focuses on the balance between public safety and the scope of the Constitutional rights under the Second Amendment. As a Firm, we are investors, not statesmen or policy makers. Our role is to make investments on behalf of our clients who are comprised of the pension plans of firemen, teachers, policemen and other municipal workers and unions, endowments, and other institutions and individuals. It is not our role to take positions, or attempt to shape or influence the gun control policy debate. That is the job of our federal and state legislators."

The Freedom Group is the corporate parent that owns Bushmaster, Remington Arms, DPMS/Panther Arms, and Para USA.

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Comments (5)

Displaying 1 - 5 of 5

Guillermo @ 12/18/2012 6:16 PM

The bottom line for Cerberus is bad publicity is bad for business and the almighty dollar is Numero Uno.

[email protected] @ 12/18/2012 6:57 PM

Talk about "spin". " It is not our role to take positions, or to attempt to shape or influence the gun control policy debate" BS. Looking to switch from Cerberus as I type. Wonder if they invest in any automotive or aviation companies?

Morning Eagle @ 12/19/2012 12:06 AM

What a mouthful of double-speak crap when it is obvious that their action is intended to influence gun control policies. And even if it is proven that it was the Bushmaster that was used, Bushmaster certainly was not pulling the trigger and had nothing to do with these killings.
Also, Police Mag, the headline to this article is misleading in that it implies that Freedom Group is being sold due to a teacher's pension fund review and that is not what is going on here.

Tom Krukemeier @ 12/19/2012 5:48 AM

When will people realize, this is not a gun control issue. Criminals don't care if they're braking a law by taking a firearm from a law abiding citizen, nor do they fear the law when they use it to kill, rob and commit other crimes. Making new laws or attempting to ban guns is not the answer.

Trigger @ 12/19/2012 9:56 AM

Smart move, pull the investment in the US and backdoor the gun market maybe through another country.

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