IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF TEXAS

FORT WORTH DIVISION

JENNIFER VANDERSTOK, et al.,

Plaintiffs,

v.

MERRICK GARLAND, in his official 

capacity as Attorney General of the United 

States; et al.,

 Defendants.

Civil Action No. 4:22-cv-00691-O

DECLARATION OF DANIEL LIFSCHITZ

I, Daniel Lifschitz, declare under penalty of perjury, pursuant to 28 U.S.C. § 1746, that the 

following statements are true and correct to the best of my knowledge:

1. I am over 18 years of age, competent to testify, and have personal knowledge of 

the matters stated herein.

2. I am the President of BlackHawk Manufacturing Group, Inc., d/b/a 80 Percent 

Arms. 80 Percent Arms is a member in good standing of the Firearms Policy Coalition, Inc., and 

has been since 2020.

3. 80 Percent Arms has been in business since 2013. Its headquarters and physical 

office are in Fort Worth, Texas. The company was previously located in Garden Grove, California, 

but after the legal environment in California became inhospitable to 80 Percent Arms’ business, 

the company and its employees relocated to Texas.

4. 80 Percent Arms is a producer and e-commerce retailer of the items at issue in this 

case, marketed colloquially as “80 Percent Lowers,” as well as tools and jigs that individuals can 

use to personally manufacture firearm frames and receivers. 80 Percent Arms’ customers are doCase 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 1 of 8 PageID 883
2

it-yourself hobbyists who appreciate the challenge of manufacturing their own firearms. Under the 

ATF’s longstanding application of the Gun Control Act of 1968 (“GCA”), evidenced and

established through extensive classification determinations issued to the industry over many 

decades, 80 Percent Arms’ products do not meet the GCA’s definition of a “frame or receiver” of 

a firearm. Thus, 80 Percent Arms has been able to lawfully sell its products directly to consumers, 

who can lawfully purchase its products through its website and ship products to those customers

through the mail. For as long as 80 Percent Arms has been in operation this practice did not subject 

it or its customers to potential criminal liability or enforcement by the ATF or the United States 

Department of Justice.

5. 80 Percent Arms’ position in the marketplace was solidified by its U.S. patent for 

one of the best-selling jigs on the market for individuals to use in personally manufacturing ARstyle receivers. The product is marketed on 80 Percent Arms’ website as the “Easy Jig Gen 3 MultiPlatform” and retails as a standalone product for $349.99:

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 2 of 8 PageID 884
3

6. Since ATF Final Rule 2021-R-05F was announced in April 2022, 80 Percent Arms

devoted extensive time and resources to try to understand what the Final Rule says and how the 

Final Rule would affect 80 Percent Arms. After reading the Final Rule’s vague and confusing text 

and listening to the public statements of President Biden and Attorney General Garland, it appears

that the intent of the Final Rule is to improperly reclassify all products colloquially marketed as 

“80 Percent Lowers” as the legal equivalent of complete, functional, regulated “frames or 

receivers” under federal law. 

7. 80 Percent Arms is set up to make retailing of these products painless to customers 

using a direct-to-consumer model where orders are fulfilled directly. This is possible because the 

products that it sells do not meet the statutory definition of a “frame or receiver.” Reclassifying 

those products as “frames or receivers” by agency rulemaking ignores the plain text of the GCA 

and the federal government’s historical application of the GCA. The Final Rule would force 80 

Percent Arms to abandon the entire business model it has built up over the past decade due to 

concerns that its continued business model could subject it and its customers to criminal charges.

8. The government has asserted that there is no irreparable harm because businesses 

such as 80 Percent Arms can simply get a license and continue with business as usual. 80 Percent 

Arms is a fully licensed FFL but being an FFL does not permit 80 Percent Arms to operate or 

survive under the regulatory scheme of the Final Rule, as nearly 100% of 80 Percent Arms’

business is for the products described above that the Final Rule newly seeks to regulate as firearms. 

9. In the last few weeks, 80 Percent Arms has learned that Defendants have made 

statements (in court filings and hearings, but not in the text of the Final Rule) suggesting that 

Defendants interpret the Final Rule to allow for the continued direct sale of those products 

marketed colloquially as “80 Percent Lowers,” but seemingly limited to AR-style “80 Percent

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 3 of 8 PageID 885
4

Lowers,” as long as they were sold by themselves, without jigs, tools, or instructions. This creates 

confusion and great concern to 80 Percent Arms and its customers, as it is unclear how a physical 

object that is not classified as a “frame or receiver” when sold on its own could suddenly be 

transformed into a “frame or receiver” merely because of its combination with tools, jigs, or 

instructions, which are all unregulated materials and if sold together, or simply made available,

could be considered a criminal offense. Because this interpretation is not self-evident from the text 

of the Final Rule, 80 Percent Arms is unsure to what extent that interpretation is legally binding 

on the government now and in the future. 80 Percent Arms is also unsure whether the following 

combinations of items may be sold with an “80 Percent Lower” for an AR style rifle without

turning it into a regulated “frame or receiver”: (1) a jig and instructions, but no tools; (2) a jig and 

tools, but no instructions; (3) a jig, but no tools or instructions; (4) tools and instructions, but no 

jig; or (5) tools, but no jig or instructions, as well as other combinations that may arise in the future.

10. It is equally unclear what Defendants’ position is on so-called “80 Percent Lowers” 

when it comes to handgun varieties, which ATF previously determined were not firearm “frames 

or receivers.” 80 Percent Arms also sells items colloquially marketed as “80 Percent Frames” that 

are based on designs previously determined by the ATF not to be the frame of a firearm, as well 

as jigs for individuals to use in the self-manufacture of handgun frames. Defendants appear to be 

silent about the Final Rule’s application to these products.

11. Even though 80 Percent Arms faced this regulatory uncertainty, in an effort to keep 

its business alive, based on what it understood to be the government’s stated position and its newly 

crafted interpretation of the GCA, 80 Percent Arms decided to continue selling its “80 Percent

Lowers” for AR-style receivers, a small assortment of replacement parts for tools, and 

miscellaneous accessories after the Final Rule’s effective date of August 24, 2022. Out of fear of 

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 4 of 8 PageID 886
5

committing a crime, 80 Percent Arms discontinued all sales of jigs and jig accessories and nonAR-style “80 Percent Lowers” (which together make up approximately 65.4% of 80 Percent Arms’

orders) by listing them as “out of stock” on our website. 80 Percent Arms also deleted from its

website the instructions for how to use its tools and jigs.

12. Customers are now fearful and confused resulting in further dramatic and 

unsustainable declines in sales across 80 Percent Arms’ website. Not only has 80 Percent Arms 

significantly cut its product offerings, but customers are no longer purchasing many other products 

that are still available on 80 Percent Arms’ website. The graphs below show that site traffic has by 

and large remained the same during the past month, but the percentage of customers willing to 

purchase items has dropped precipitously. Typically, 80 Percent Arms could count on 3‒5% of 

customers who visit the website to purchase something, a number considered healthy within the ecommerce industry. But after the Final Rule went into effect, that number has dropped to less than 

1%, a value so low that it cannot sustain 80 Percent Arms as a profitable business.

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 5 of 8 PageID 887
6

13. Despite 80 Percent Arms’ efforts to keep the business afloat, revenue has 

plummeted since the Final Rule took effect on August 24, 2022. Compared to 80 Percent Arms’

average daily revenue in 2022 prior to the Final Rule’s effective date, its average daily revenue 

since the rule took effect has dropped by more than 90%.

14. Based on 80 Percent Arms’ interactions with prior and potential customers, it is 

clear that many people believe, in the wake of the uncertainty created by the Final Rule, that all of 

80 Percent Arms’ “80 Percent Lowers” sold direct to consumers without serial numbers are banned 

by the Final Rule and that purchasing these products could potentially subject 80 Percent Arms

and these individuals to criminal liability. Without assurances for customers that they are not 

illegally purchasing a “firearm” when they buy an 80 Percent Arms “80 Percent Lower,” with or 

without a jig or instructions, sales will not recover. Below are some examples of the sorts of 

comments 80 Percent Arms has received:

“I might be wrong, but I thought it was illegal to sell 80% lowers if you don’t have an FFL, and they have to be serialized. 

????? I hope you can clear this up.” – Wednesday Aug 31, 2022. 

—

“While I appreciate your stance on this, I cannot accept shipment given the existing rule. I understand you have your own 

legal team. I’m barred in the state of Texas and went to the University of Virginia School of Law. I have reviewed the 

regulation and I am not comfortable receiving delivery without the item being shipped to an FFL.” – Aug 26, 2022.

RULE IN 

EFFECT

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 6 of 8 PageID 888
7

—

“O.K. how does this work since the ATF now requires that 80% lowers be serialized?” – Aug 24, 2022

—

“Several parts if you order were 80% lower receivers, which as far as I am aware are now required to be serialized per the 

new ATF rule - as a result of this, I dont need any portion of the order, and was wondering when it would be canceled?” -

Sep 1, 2022

—

“are 80% lowers still becoming illegal on the 1st? thanks!” - Aug 31, 2022

—

“Good afternoon, I was shopping and was wondering if you guys still sold the jigs for 80 percent frames? I know the recent 

atf law made the frames illegal but are the jigs illegal now too? And if they are still legal/for sale, can I buy one from your 

website?” - Aug 29, 2022

15. 80 Percent Arms’ inability to sell its unique, patented jig is also severely damaging 

its business. The 80 Percent Arms Easy Jig Gen 3 Multi-Platform is one of 80 Percent Arms’ most 

demanded products and attracts a significant number of customers to 80 Percent Arms. The 

availability of that jig on 80 Percent Arms’ website is essential to its ability to attract and make 

sales to new customers. 80 Percent Arms’ jig and the “80% Lowers” that itsells are complementary 

goods that are used together, each creating a demand for the other. The inability to sell the jig 

drastically reduces sales for the “80% Lowers,” as well as other ancillary products and accessories.

16. Like any small business, 80 Percent Arms has fixed operating costs, the most 

notable of which are compensation for employees and costs for its physical office in Fort Worth, 

Texas. In the wake of the Final Rule’s catastrophic effects on 80 Percent Arms’ business, it has 

held off on plans to hire additional employees. 80 Percent Arms is doing its best to retain as many 

employees as possible while awaiting clarity from Defendants, or the courts, on the Final Rule’s 

lawfulness. Unfortunately, 80 Percent Arms’ sales since the Final Rule took effect have declined 

so significantly that it is on track to be operating at a loss and no longer profitable.

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 7 of 8 PageID 889
8

17. 80 Percent Arms maintains cash reserves for warranties, refunds, and replacements. 

If 80 Percent Arms is unable to ship products such as jigs and jig accessories that were previously 

ordered by customers, and continues to be unable to make a profit, 80 Percent Arms will be forced 

to shut down the business. Though 80 Percent Arms does have enough cash on hand to continue 

paying our expenses for 2 to 3 months while we operate at a loss, we will be forced to shut down 

our business and cease operations if this trend continues for much longer:

18. In the absence of a preliminary injunction, 80 Percent Arms most likely will not be 

able to stay in business long enough to receive a final judgment from this Court, not including any

additional time needed for appellate review.

DATED this ___th day of September, 2022.

________________

Daniel Lifschitz

President

BlackHawk Manufacturing Group, Inc.

6

Case 4:22-cv-00691-O Document 62-5 Filed 09/08/22 Page 8 of 8 PageID 890