The Watchtower Firearms lawsuit at the center of most searches is the securities case brought in 2025 by the former owners of F-1 Firearms against Watchtower CEO Jason Colosky and related parties, arising out of Watchtower’s 2023 acquisition of F-1. That case is now back in Texas state court after a federal remand, while related claims are being litigated inside Watchtower Firearms LLC’s Chapter 11 bankruptcy in the Northern District of Texas.
Who Sued Watchtower and Why
In mid-2025, F-1 Firearms LLC, along with Dion Podgurny, Jacqueline Podgurny, and Function One Consulting LLC, filed suit against Jason Colosky, Kenneth Judd, and Valkryrie Equities Corporation in state court in Montgomery County, Texas.1Justia Dockets. F-1 Firearms LLC et al v. Colosky et al The case was classified as a securities matter and reportedly stemmed from disagreements over post-acquisition obligations, potentially involving earn-out payments or how the acquired assets were being managed.2Ronin’s Grips Blog. Rebuilding Watchtower: A New Era in Firearms Manufacturing
The dispute traces back to June 12, 2023, when Watchtower acquired F-1 Firearms to gain precision CNC machining capacity and an existing workforce.3PR Newswire. Watchtower Announces the Acquisition of F-1 Firearms LLC The relationship between the two sides broke down after the deal, and by late 2024 the friction with the former F-1 owners was one of several pressures pushing Watchtower toward bankruptcy.2Ronin’s Grips Blog. Rebuilding Watchtower: A New Era in Firearms Manufacturing
Where the Case Stands
Colosky removed the lawsuit to federal court in the Southern District of Texas, where it was assigned to Judge Keith P. Ellison as Case No. 4:2025cv03108. The plaintiffs moved to send it back to state court. A motion to transfer to the Northern District of Texas was denied in July 2025, and on December 5, 2025, Judge Ellison signed an order of remand returning the case to the 457th Judicial District Court of Montgomery County, where it remains active.1Justia Dockets. F-1 Firearms LLC et al v. Colosky et al
The Parallel Fight Inside the Bankruptcy
Watchtower Firearms voluntarily filed for Chapter 11 on February 27, 2025 in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, Case No. 25-40684, before Judge Mark X. Mullin. The filing triggered an automatic stay that halted the landlord’s pending eviction and other litigation against the company. The company reported estimated assets and liabilities each in the $10 million to $50 million range, with between 50 and 99 creditors.4Bankruptcy Observer. Watchtower Firearms Bankruptcy Case
Inside the bankruptcy, the Podgurny parties (F-1 Firearms LLC, PFT Texas LLC, and Dion Podgurny) filed a motion to convert the case from Chapter 11 to Chapter 7, which would have forced a liquidation instead of a reorganization. The court scheduled and then canceled the hearing on that motion in January 2026, indicating it would rule in writing instead.4Bankruptcy Observer. Watchtower Firearms Bankruptcy Case
PFT Texas LLC and Function One Consulting also filed an application seeking $727,523.25 in administrative expenses against the bankruptcy estate.5Inforuptcy. Bankruptcy Case Watchtower Firearms LLC In June 2026, those parties moved to withdraw that claim, but CK Strategic Partners objected to the withdrawal, and a hearing was set for June 22, 2026.6PACER Monitor. Watchtower Firearms LLC Bankruptcy Case Separately, an estimation hearing tied to the Podgurny parties’ claims was abated indefinitely after the court granted an emergency continuance in April 2026.7BK Alerts. Bankruptcy Case Watchtower Firearms LLC An Official Committee of Unsecured Creditors, represented by Husch Blackwell LLP, is participating in the case.
Who Is Actually on the Hook: Old Watchtower vs. Watchtower Defense
An important boundary for anyone tracking the litigation: the lawsuits do not follow the operating company that customers deal with today. On September 30, 2025, substantially all of Watchtower Firearms’ assets were sold under Section 363 of the Bankruptcy Code to CK Strategic Partners, which relaunched the business as Watchtower Defense.8Soldier Systems. Watchtower Defense Successfully Closed a Sale Transaction2Ronin’s Grips Blog. Rebuilding Watchtower: A New Era in Firearms Manufacturing9SSG Capital Advisors. SSG Advises Watchtower Firearms in Sale to CK Strategic Partners
Because a Section 363 sale conveys assets “free and clear” of prior liabilities, the outstanding lawsuits, lease disputes, and creditor claims stayed with the old Watchtower Firearms bankruptcy estate rather than transferring to Watchtower Defense.2Ronin’s Grips Blog. Rebuilding Watchtower: A New Era in Firearms Manufacturing The Montgomery County securities suit names Colosky, Kenneth Judd, and Valkryrie Equities Corporation as defendants, not the reorganized manufacturer.1Justia Dockets. F-1 Firearms LLC et al v. Colosky et al
Current Status of the Estate
The original Watchtower Firearms LLC bankruptcy case remains open and active before Judge Mullin as of June 2026, focused on resolving remaining claims against the old corporate shell.6PACER Monitor. Watchtower Firearms LLC Bankruptcy Case No plan of distribution or conversion to Chapter 7 has been entered on the docket, and the deadline for governmental entities to file claims passed in August 2025.4Bankruptcy Observer. Watchtower Firearms Bankruptcy Case Between March and August 2025, the company accumulated roughly $4.6 million in operating losses during the reorganization period.2Ronin’s Grips Blog. Rebuilding Watchtower: A New Era in Firearms Manufacturing
For anyone watching the litigation, two dockets matter. The securities lawsuit sits in the 457th Judicial District Court of Montgomery County, Texas after the December 2025 remand. The related claims, the conversion motion, and the administrative expense dispute sit in the Northern District of Texas bankruptcy case, No. 25-40684.