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Brewer, Attorneys & Counselors achieved a major legal victory on behalf of the National Rifle Association of America (“NRA”) in July 2024 when a New York Supreme Court Justice rejected the New York Attorney General’s (“NYAG”) demands that a compliance monitor be appointed to oversee the historic gun rights organization. The New York Times reported it was a “win” for the gun rights group and the “beginning of the end of a four-year-old case…”
In August 2020, NYAG Letitia James filed a “dissolution lawsuit” against the NRA – a case that sought to shut down the Association and seize its assets. Four years later, following trial proceedings, Justice Joel M. Cohen 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.
“Key facts and a chorus of voices established that the relief sought by the NYAG was unwarranted,” said NRA counsel William A. Brewer III. “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.”
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,” said NRA President Bob Barr, as he “praised the Association’s millions of loyal members who never lost faith in the organization and its commitment to protecting freedom.”
A 10-day bench trial that concluded on July 29, 2024, followed a 24-day jury trial earlier in the year, during which the NRA established that 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 the court’s decision was recognition that the NRA established that 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.
Joining Brewer in representing the NRA were firm partners Sarah B. Rogers, Svetlana M. Eisenberg, and Noah Peters.
Related News
“Judge Lets N.R.A. Keep Its Independence but Pushes for Reforms,” The New York Times
“Judge Tosses New York AG’s Bid to Dissolve NRA,” The Wall Street Journal
“NRA Scores Court Victory Against AG Letitia James in New York,” Daily Caller
“Judge Blocks NY’s Bid to Shutter NRA, but Lawsuits Continues,” Associated Press
