Mayor Hector Lora said authorities believe rival gang members were involved in the 2 p.m. shooting on Monroe Street near Memorial Elementary School 11.
There was no immediate word on the victims' conditions.
School was in session at the time. Teachers and students reported hearing gunshots outside before the buildindg was locked down.
Those taken into custody included both adults and juveniles, Lora said.
The Passaic County Prosecutor's Office and city police were investigating.
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