The American Sniper’s Legal Quandary

The movie “American Sniper,” based on the life of ex-Navy SEAL Chris Kyle, has grossed more than $130 million in domestic ticket sales.  Yet, the SWAT team training business that Mr. Kyle founded after leaving the military is preparing to shut down.

In 2009, Mr. Kyle borrowed about $2.6 million from an investor group to start his business, Craft International LLC.  His Dallas-based company offered training for police officers, SWAT teams and military members, but struggled to turn a profit.  After Mr. Kyle was killed on a Texas shooting range in 2013, Ms. Kyle and Craft executives began fighting over who owned the company. 

Now, Ms. Kyle and Craft’s creditors have reached a settlement under which the company will shut down, the Kyle family can live rent-free until October 30 in their Texas home, and Ms. Kyle will get the rights to Craft’s skull-shaped logo.  The settlement still needs court approval and U.S. Bankruptcy Judge Barbara J. Houser has agreed to look over the settlement at a February 17 hearing.

See Katy Stech, Behind ‘American Sniper,’ A Lot of Legal Sniping, Market Watch, Jan. 24, 2015.