— Colt’s manufacturing firm has announced the shutdown of its Indianapolis plant and will stop producing firearms by the end of the year.
Colt, which employs about 1,400 workers, says it has already started manufacturing the new M16A2 assault rifle.
The company is also expected to start manufacturing a new weapon in the coming months, the Indianapolis Star reported.
Colt was founded in the early 1990s in Indianapolis by Bill Stewart and has a global production footprint of about 1.8 million guns, including some 2.6 million in the United States.
The company says it will resume full production by the time the new weapon is in production.
The company has been under investigation for months by the Justice Department and the FBI over alleged illegal and fraudulent sales of guns and firearms parts.
Colt has been hit with a federal civil rights suit by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Justice Departments Civil Rights Division, accusing it of selling the wrong weapons.