In May, 2006, New York City filed a lawsuit against 15 gun dealers in Georgia, Ohio, Pennsylvania, South Carolina, and Virginia. In December, 2006, New York City filed a second lawsuit against 12 additional gun dealers in the same states. Investigators using hidden cameras recorded the dealers named in both suits engaging in transactions that the dealers should have recognized as straw purchases.

Watch a video, in dial-up or broadband, of New York City Mayor Michael Bloomberg discussing straw purchases.

26 of the 27 dealers named in the two lawsuits have now settled out of court and agreed to unprecedented oversight of their firearms sales. Under the terms of the agreements, a Special Master has been appointed who will have unlimited access to the dealers' records and the power to impose escalating fines for any new violations of federal, state, or local gun laws. An additional three dealers defaulted, which clears the way for the court to impose monitoring of these dealers' business practices.