A Manhattan, New York jury found the NRA and its former leader Wayne LaPierre liable in a civil legal action. In 2020, New York Attorney General Letitia James filed suit against the NRA, LaPierre and other leaders of the organization. The case concluded this week with a jury verdict. After deliberating for a full week, a New York jury Friday found both the NRA and its former CEO/Executive Vice President, Wayne LaPierre, liable for spending NRA donor funds improperly. Mr. LaPierre has been ordered to pay back more than $4.351 million to the NRA. It is not clear yet whether Mr. LaPierre, the NRA, or other parties will seek to overturn the trial result on appeal.
Prior to the commencement of the civil trial in New York, Wayne LaPierre resigned as CEO and Executive Vice President of the NRA. In early January 2024, NRA President Charles Cotton accepted LaPierre’s resignation during a board meeting. LaPierre, 74, cited health reasons as motivation behind the departure.
Origins and Outcome of New York Civil Lawsuit vs. Wayne LaPierre and Others
On August 6, 2020, following 18 months of investigation, New York Attorney General Letitia James filed a civil lawsuit against the NRA and LaPierre, as well as treasurer Wilson Phillips, former chief of staff and current executive director of general operations Joshua Powell and general counsel and secretary John Frazer, alleging fraud, financial misconduct, and misuse of charitable funds, and calling for the dissolution of the association due to chronic fraudulent management. The NRA attempted to have the case moved to Texas and the dissolution lawsuit dismissed, but Federal Judge Harlin Hale of the Northern District of Texas ruled that the effort was made in bad faith[.] In March 2022, New York Supreme Court Justice Joel Cohen denied the claim to dissolve the NRA, while allowing the lawsuit against LaPierre and the organization to move forward.
On February 23, 2024 his civil trial concluded with the jury ordering LaPierre to repay the NRA $4,351,231. It also ordered the NRA’s retired finance chief, Wilson Phillips, to repay $2 million, found that the NRA omitted or misrepresented information in its tax filings, and violated New York law by failing to adopt a whistleblower policy.
The National Shooting Sports Foundation (NSSF) and fourteen firearm manufacturers, distributors, and retailers has filed a major lawsuit in Federal Court, NSSF et al vs. Letitia James (N.Y. Atty. General). This action seeks to overturn New York States “public nuisance” law which targets gun makers for the criminal misuse/unlawful possession of firearms in New York no matter where they were purchased. The plaintiffs also moved for a preliminary injunction challenging the misguided New York statute as unconstitutional.
The NSSF brought this legal action to “uphold the foundations of tort law, fight government overreach, and protect the firearm businesses that lawfully operate and employ over 340,000 Americans.” Along with the NSSF, the other 14 plaintiffs include: Beretta USA, Central TX Gun Works, Davidson’s, Glock, Hornady Mfg., Lipsey’s, Osage Co. Guns, RSR Group, Shedhorn Sports, SIG Sauer, Smith & Wesson, Sports South, Sprague’s Sports, and Sturm Ruger & Company.
The challenged law, signed by disgraced Democratic Party Governor Andrew Cuomo, allows civil lawsuits by municipalities, such as the city of New York, as well as the State of New York, against the firearm industry for the criminal actions by non-associated third parties. The “public nuisance” statute also permits private lawsuits by persons who have been harmed or threatened by criminals using firearms. Both New York State and the City of New York were part of a wave of similar lawsuits filed over twenty years ago that led to Congress passing the bipartisan PLCAA in 2005.
New York’s “public nuisance” law subjects firearm industry companies to civil lawsuits for the criminal misuse or unlawful possession of firearms in New York. The law would impose liability on industry members for firearms lawfully sold anywhere in the United States that end up being criminally misused or illegally possessed in New York thereby allegedly contributing to a “public nuisance” in the state. The NSSF lawsuit challenges the New York law as preempted by the Federal Protection of Lawful Commerce in Arms Act (PLCAA). It also challenges the law as unconstitutionally vague in violation of the Due Process Clause of the United States Constitution. The lawsuit further challenges the law as an impermissible attempt by New York State to regulate interstate commerce in violation of the Commerce Clause of the Constitution.
The NSSF states that “New York is trying to use the threat of crushing liability to coerce out-of-state businesses to adopt sales practices and procedures not required by Congress or the law of the state where they operate. The Constitution reserves the power to regulate interstate commerce solely to Congress.”
The state of New York, through NY Atty. General Letitia James, has filed suit against the NRA attacking actions by its leadership, claiming that funds were spent improperly. The purpose of the suit, said James, is “to dissolve the organization in its entirety”. This lawsuit originates from New York because the NRA is a New York-chartered organization. In a coordinated legal action, likewise motivated by partisan politics, District of Columbia Attorney General Karl Racine brought suit against the NRA Foundation, claiming the Foundation gave money to the NRA without proper oversight.
About the New York Lawsuit: The NY suit claims NRA CEO Wayne LaPierre, Wilson “Woody” Phillips (former NRA treasurer/CFO), Joshua Powell (former chief of staff) and John Frazer (corporate secretary/general counsel) diverted tens of millions of dollars for their personal benefit and enrichment. NY alleges that the “The NRA was serving as a personal piggy bank” for these four men.
About the DC Lawsuit: “Key to the D.C. complaint are a pair of $5 million loans in 2017 and 2018 from the Foundation to the Association. In addition to those loans, the suit alleges the Foundation paid millions in fees to the NRA with no oversight, essentially placing the NRA’s interests above its own. That is a violation of the Foundation’s articles of incorporation.” Source: The Shooting Wire, 8/7/2020.
The NRA Responds — And Files Suit for First Amendment Violations
LaPierre stated that the action by New York is “an unconstitutional, premeditated attack aiming to dismantle and destroy the NRA”. Immediately the NRA began to fight back, filing a countersuit on 8/6/2020 stated that the NY AG’s lawsuit has violated the NRA’s First Amendment rights. NRA President Carolyn Meadows called the NY lawsuit a “baseless, premeditated attack on our organization and the Second Amendment freedoms it fights to defend”.
Lawsuits filed against the NRA will be the major issue at the NRA Annual Meeting next month.
The National Shooting Sports Foundation issued a statement condemning the NY Atty. General’s politically-motivated scheme to dissolve the NRA:
“NSSF, the trade association for the firearm industry, is troubled by the politically-driven decision of New York Attorney General Letitia James to seek to dissolve the National Rifle Association, America’s oldest civil rights organization.
The lawsuit filed today by Attorney General James seeks to punish the over five million members of the National Rifle Association based on mere allegations of possible wrongdoing by a few individuals.
NSSF is deeply concerned about the apparent political agenda to silence the strongest voice in support of the Second Amendment ahead of the election in November.
This lawsuit, and one filed today by the District of Columbia Attorney General, should concern all Americans who cherish both the First and Second Amendments to our Constitution regardless of their views on what laws and regulations are appropriate to address the criminal misuse of firearms.”
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“NSSF, the trade association for the firearm industry, is troubled by the politically-driven decision of New York Attorney General Letitia James to seek to dissolve the National Rifle Association, America’s oldest civil rights organization.
