Law 360 Reports on NRA Reaction to NYAG Filing

May 8, 2024 – Law360 reports that Brewer client the National Rifle Association of America (NRA) responded to a filing by the New York Attorney General (NYAG) in which she asked a New York judge not to "reverse" a Manhattan jury's verdict. The jury verdict was entered in the NYAG vs. NRA lawsuit on February 23, 2024.

NRA lawyer William A. Brewer III told the publication, "In her response to the NRA's motion for judgement post-trial, the NYAG advances a number of novel legal theories to save the claims she presented at trial ... The NYAG's theories have no grounding in existing law. We look forward to responding." 

The report states, "In February, jurors found that [former NRA Executive Vice President Wayne] LaPierre, who resigned on the eve of trial, as well as general counsel John Frazer and retired Chief Financial Officer Wilson 'Woody' Phillips, breached their fiduciary duties. Frazer was additionally held responsible for the false filings and Phillips for the related-party transactions. The verdict requires LaPierre to repay $4.4 million in ill-gotten funds to the NRA for his breaches, while Phillips must pay back $2 million."

A second phase of the proceedings is scheduled to begin in July – a bench trial before Justice Joel M. Cohen, in which the judge is expected to rule on any final remedies against defendants. In the final analysis, individual defendants could face financial awards payable to the NRA. No money damages will be awarded against the Association.  

Read the report here. 

The Reload: NRA Foundation Settles DC Lawsuit

 April 18, 2024 – Reload editor and CNN contributor Stephen Gutowski today reported on the consent agreement between Brewer client the National Rifle Association of America (NRA), the NRA Foundation, and the District of Columbia Attorney General (DCAG). 

According to the report, per terms of the consent order, the NRA Foundation will "adopt a conflict-of-interest policy, a board and officer compliance training program, and new standards for lending money or doing business with other NRA entities. It also agreed to limit loans to the NRA’s other operations to only charitable purposes in line with the group’s educational mission. However, it admitted no wrongdoing and avoided the more severe sanctions the AG initially sought to impose."

Gutowski wrote that the NRA disputes claims made by DCAG Brian Schwalb after the order was signed and "demanded he retract them in a letter to his office that was obtained by The Reload. It noted the lawsuit initially asked the court to appoint an overseer for the Foundation, a condition not included in the deal, and the Foundation didn’t admit to any wrongdoing in the settlement. It also asserted the NRA had agreed to pay back the Foundation for an outstanding loan before DC filed its lawsuit."

“The DCAG’ spins’ today’s settlement in avoidance of the facts: the DCAG long ago abandoned any claims of wrongdoing against the NRA,” William Brewer, the NRA’s outside counsel, said in a statement. “Even by DC standards, this is rank political gamesmanship – an after-the-fact justification for a failed lawsuit by these officials.”

Read the article here. 

The Hill Reports on NRA Settlement with DCAG

April 17, 2024 – The Hill reported today on a settlement agreement between Brewer client the National Rifle Association of America (NRA), the NRA Foundation, and the District of Columbia Attorney General (DCAG). The reporting includes comments from firm partner William Brewer, who responded to statements from DCAG Brian Schwalb as “distorted and untruthful.”

As stated by the NRA, “On April 16, 2024, the NRA and NRA Foundation entered into a consent order [resolving an August 2020 lawsuit], whereby the DCAG dismisses all claims against the NRA. The order contains no adverse finding against the NRA and no allegations regarding the use of funds of the NRA Foundation. There are no fines or penalties whatsoever against the NRA. DCAG Schwalb described the settlement differently.”

As reported by The Hill, the NRA also fought back against Schwalb’s characterization of the settlement in a statement to The Hill, with NRA counsel William Brewer calling it “distorted and untruthful.”

“The DCAG ‘spins’ today’s settlement in avoidance of the facts: the DCAG long ago abandoned any claims of wrongdoing against the NRA,” Brewer wrote. “Even by DC standards, this is rank political gamesmanship — an after-the-fact justification for a failed lawsuit by these officials.”

Brewer continued, claiming that many of the claims Schwalb alleged against the NRA Foundation were unfounded, specifically noting that the settlement agreement includes no accusations or implications of wrongdoing by the organization.

“In the face of these facts, the DCAG settled its lawsuit — abandoning all claims against the NRA and NRA Foundation,” he wrote.

Read more here.

Law360: NRA, LaPierre, Execs Seek to Ax Verdict

April 8, 2024 – Law360 reports that Brewer client the National Rifle Association of America (NRA) is asking a New York judge to "throw out a Manhattan jury's verdict." A jury verdict was entered in the NYAG vs. NRA lawsuit on February 23, 2024.

According to the report, in its "motion for judgment notwithstanding the verdict, the NRA argued that prosecutors did not prove that the organization itself failed to protect its charitable assets. The group said there was no proof at trial that its charitable assets, as opposed to noncharitable assets, were improperly administered, nor was there proof of a 'sustained or systematic failure of the board to exercise oversight.'"

"The trial record clearly demonstrates that the NRA was the victim of hidden arrangements and control overrides orchestrated by former insiders working with a handful of their favorite vendors," NRA attorney William A. Brewer III told Law360. "The record also demonstrates the NRA Board took swift, decisive action when it became aware of such conduct."

"The Board's commitment to good governance was on full display during the jury trial," he added. "The NRA appreciates the service of the jury, but believes it improperly attributed individual misconduct to the NRA. As such, the Association seeks judgment in its favor on all remaining counts."

Read the Law360 report (subscription required).

Washington Examiner Reports on Brewer Client NRA’s Legal Victory Against ATF

April 2, 2024 – The Washington Examiner reported on Brewer client NRA and its recent legal victory over the ATF. A Texas court recently enjoined the “pistol brace rule” from taking effect against NRA members. The legal win is the most expansive ruling of its kind to date – protecting millions of NRA members across the nation.

As reported in the article, “Big Win for NRA in Battle with Biden’s ATF,” “The decision followed other court rulings protecting the 3.7 million members of three other gun groups from the ATF action that abruptly changed the definition of rifles to include the AR pistols, among the most popular firearms in the country. Under the new rules, they will be taxed and registered.”

“The NRA will continue to play offense against this unconstitutional rule,” says NRA interim EVP and CEO Andrew Arulanandam. “This is yet another example of the NRA fighting for its members — and protecting the constitutional freedoms in which they believe.”

Law360 Reports on Legal Win for NRA

March 29, 2024 – Law360 reported today on a legal win for the NRA in its lawsuit against the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) over the “pistol brace rule.”

The NRA filed suit in the Northern District of Texas on July 3, 2023, against the ATF, the U.S. Department of Justice, and Steven M. Dettelbach, in his official capacity as director of ATF, seeking to enjoin the ATF’s unconstitutional rule, which would have reversed its long-standing position that pistol braces do not transform pistols into rifles subject to onerous registration and taxation requirements under the National Firearms Act.

As reported, “The court found that the final rule violates the Administrative Procedure Act, which governs how federal agencies develop and issue regulations, and that the NRA had a "substantial likelihood" of succeeding on the merits. According to the opinion, the gun rights group also demonstrated that it had Article III associational standing to bring the action on behalf of its members.”

According to Law360, the NRA successfully argued its members face irreparable harm from the new rule, which subjects law-abiding gun owners to penalties, fines, and potential prison sentences for the use of a brace. 

"The NRA has emerged as a leading voice in opposition to this unlawful attempt to limit Second Amendment freedom," said NRA counsel William A. Brewer III in a statement. "When it was determined NRA members could not benefit from other injunctions, the association moved to the tip of the spear in the advocacy and prevailed in obtaining sweeping relief for its members."

Joining Brewer in representing the NRA are firm partners Noah Peters and Matthew H. Davis.

Read more here.

Brewer Firm Scores Legal Victory for NRA in “Pistol Brace” Lawsuit

March 29, 2024 – The National Rifle Association of America (“NRA”) announced a major legal victory today, as a Texas court enjoined the “pistol brace rule” from taking effect against its members. The legal win is the most expansive ruling of its kind to date – protecting millions of NRA members across the nation.

The NRA filed suit in the Northern District of Texas on July 3, 2023, against the ATF, the U.S. Department of Justice, and Steven M. Dettelbach, in his official capacity as director of ATF (“Defendants”), seeking to enjoin the ATF’s unconstitutional rule, which would have reversed its long-standing position that pistol braces do not transform pistols into rifles subject to onerous registration and taxation requirements under the National Firearms Act.

Today, U.S. District Judge Sam A. Lindsay agreed with the NRA that it has “associational standing” to pursue this case because it is a traditional membership organization whose members rely on the NRA to protect their gun rights. In other words, the NRA is the voice of its members. Further, Judge Lindsay applied the Fifth Circuit’s earlier holding in Mock v. Garland that the ATF failed to go through an appropriate notice-and-comment period before issuing its “pistol brace rule,” making major revisions to the rule without acknowledging the hundreds of thousands of negative comments from the NRA and its members across the nation, thus rendering it likely unlawful.

“The NRA has emerged as a leading voice in opposition to this unlawful attempt to limit Second Amendment freedom,” says NRA counsel William A. Brewer III. “When it was determined NRA members could not benefit from other injunctions, the Association moved to the tip of the spear in the advocacy and prevailed in obtaining sweeping relief for its members.”

Joining Brewer in representing the NRA are firm partners Noah Peters and Matthew H. Davis.

New Republic Reports that NRA Appears to “Notch Another Victory” at Supreme Court

March 19, 2024 –New Republic Staff Writer Matt Ford writes that Supreme Court justices appear ready to side with the NRA in its First Amendment case against former New York State Department of Financial Services Superintendent Maria Vullo.

He writes in the article following the Supreme Court arguments in the matter that, "By the end of the arguments, it was clear that whatever uncertain winds were swirling at the outset had shifted decidedly in the NRA’s favor.”

Ford writes that it is “hardly surprising” that the NRA would interpret Vullo’s actions as “unconstitutional threats,” noting that he previously wrote describing former New York Governor Andrew Cuomo’s campaign against the NRA as being blunt and heavy-handed, and Cuomo’s messaging about the NRA as “particularly venomous.” Ford predicted that the former governor’s “overheated rhetoric and ham-fisted tactics will backfire when the court hands down a ruling by the end of June.”

The Brewer firm has represented the NRA on this matter since its inception, advocating alongside First Amendment scholar Eugene Volokh and the ACLU.