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A Connecticut court ruled that the families of schoolchildren killed during Sandy Hook's mass shooting in 2012 could sue the American arms maker Remington.
At a vote by 5 votes to 4, the US Supreme Court ruled that the lawsuit could continue on the basis of state consumer protection laws.
Adam Lanza used the weapon, which killed 27 people, including 20 primary school children.
This decision is a rare legal defeat for an arms company in a mass shooting case.
The lawsuit, filed by the parents of nine victims and one survivor, highlights the "militaristic" marketing of Remington's AR-15 rifle.
"The goal of the families has always been to shed light on Remington's calculated, profit-driven strategy of expanding the AR-15 market and wooing high-risk users at the expense of Americans, "said Josh Koshoff, a lawyer for the families of the victims.
"Today's decision is a critical step in achieving this goal."
Remington did not immediately respond to a request for comment from the BBC.
The proceedings were initially delayed after the bankruptcy of the company last year as a result of the drop in sales.
A first lawsuit against Remington was launched in 2016 and a family appeal was lodged in the highest court of the state last year. It should be submitted to the US Supreme Court.
Under US law, firearms manufacturers and resellers are legally protected from legal liability if one of their firearms is used for criminal purposes. Exceptions, however, are provided in the case of prejudicial marketing.
"It seemed incredible that this industry benefits from this type of protection," said David Wheeler, father of a Sandy Hook victim, during an interview with the Financial Times.
"It's hard not to look at that [ruling] and I think states may be turning to a more reasonable place. "
A wave of shootings in schools in recent years has highlighted the debate over US gun laws.
In response, some US retailers have raised the age limit to 21 for certain purchases of firearms or have stopped stocking semi-automatic weapons.
Last month, the country's House of Representatives approved a bill expanding the background check of all firearms sales.
Critics say the changes would not have ended many of the recent shootings, and President Trump has vetoed the bill when it was passed. by the US Senate.
Lanza killed 20 students and six school staff. He had previously shot his mother. As the police approached the school, he was killed.
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