The National Rifle Association of America (NRA) recently commented on the conclusion of trial proceedings in New York Attorney General (NYAG) Letitia James’ lawsuit against the Association—announcing it emerged from the proceedings without the appointment of a monitor and remains positioned for a bright future.
Four years ago, the NYAG filed a “dissolution lawsuit” against the NRA—a case that sought to shut down the Association and seize its assets. On Monday, July 29, New York State Supreme Court Justice Joel M. Cohen in Manhattan rejected the NYAG’s demands for a compliance monitor and instead recommended the NRA and NYAG confer to consent to further governance reforms. In accordance with the court’s direction, the NRA will suggest additional reforms in furtherance of its ongoing commitment to good governance.
The NYAG sought something vastly different: a “monitor” that would have been an invasive and crippling remedy with financial oversight, access to employees and records, and an open line of communication with the NYAG. That proposal was rejected by the court.
A Safe and Secure NRA
In the final analysis, the NRA will pay no fines, collect awards from individual defendants and have the freedom to pursue its mission. An expected final award of millions of dollars against former Executive Vice President and CEO Wayne LaPierre will be payable to the NRA, as will proceeds from prior settlements with former NRA executives Josh Powell and Wilson Phillips.
The court found no reason to remove NRA Secretary John Frazer from his position.
“We recognize the importance of the jury’s findings and will continue our commitment to good governance,” NRA President Bob Barr said, as he, “praised the Association’s millions of loyal members who never lost faith in the organization and its commitment to protecting freedom.”
“The NRA is moving forward full speed ahead,” NRA EVP & CEO Doug Hamlin said. “We have a mission to fulfill and elections to win up and down the ballot. This is a major step toward rebuilding the trust of the members, donors, industry and our staff.”
A 10-day bench trial that concluded today followed a 24-day jury trial earlier this year, during which the NRA established the NYAG failed to prove self-dealing or bad faith by the NRA Board. The NRA challenged the NYAG’s narrative that any governance issues at the NRA are “persistent” or ongoing.
Importantly, reflected in today’s decision was recognition that the NRA established it adopted new policies and accounting controls, displaced vendors and “insiders” who abused the Association, and accepted reparations for costs determined to be excess benefits. Most of these corrective measures—part of an internal investigation ignited by the NRA Board in 2018—were underway before the NYAG even began her investigation.
Upon assuming office in 2019, Attorney General James launched an investigation and sought to put the NRA out of business. As part of her drive to destroy the NRA, on July 1, 2024, James requested a court-appointed delegate with sweeping powers over the Association.
The NRA’s defense focused on its compliance efforts and the organization’s commitment to good governance following whistleblower complaints that emerged in the summer of 2018. When the NRA Board was alerted to the allegations, it led an investigation and determined that certain individuals participated in transactions that ran afoul of NRA policies and procedures. Testimony confirmed the “tone at the top” of the NRA has indeed changed.
“Key facts and a chorus of voices established that the relief sought by the NYAG was unwarranted,” NRA counsel William A. Brewer III said. “The NRA organized its defense around an important reality: there was no evidence the NRA Board of Directors condoned the violations in question; instead, the board acted when it became aware of deviations from its own controls. That said, the Association takes seriously its commitment to stay in strict compliance with all controls.”
Learn more about the National Rifle Association of America at nra.org.
