Colt Industries sued the city Monday, arguing that a new ordinance banning the sale or possession of assault rifles is unconstitutional and is severely disrupting its business contracts with local gun dealers.

The New York gun maker's lawsuit, filed in U.S. District Court, seeks a court order barring enforcement of the ordinance until a full trial can be held. A hearing was set for Wednesday before U.S. District Judge William Gray.Colt's lawyers said if the law is not overturned the company will lose $350,000 a year in sales of AR-15 assault rifles in Los Angeles. Colt also said the law hurts its 150-year reputation.