NY Attorney General Replies On Motion To Dismiss NRA’s Counterclaims

NRA had counter-sued claiming selective enforcement and reprisals, the NY Attorney General moved to dismiss it, and here is her reply. It is pretty hard-hitting.

“Even setting aside the NRA’s failure to contest the extensive allegations of wrongdoing in the Complaint, it has admitted to misconduct alleged by the OAG in its 2019 and 2020 IRS Form 990 filings, made in November 2020 and 2021, respectively. The NRA admits, among other things, that three of the named defendants—LaPierre, Phillips, and Powell, along with various other current and former employees—collectively received hundreds of thousands of dollars in excess benefits in the form of improperly reimbursed travel and other expenses.”

“With respect to the NRA’s claim that it has diverted assets as a result of the OAG’s investigation and litigation, that claim is contradicted by the NRA’s pleading that it voluntarily undertook a review of—and uncovered violations of—its internal compliance program prior to the Attorney General’s campaign statements and the commencement of this investigation. Am. Counterclaims p. 145 ¶ 15. The costs of remedying and defending illegal conduct is not an injury. Moreover, to this day, the NRA continues to report that it has identified and corrected violations of law—after having those violations pointed out to the NRA by the OAG.”

“The purported comparators cited by the NRA . . ., enforcement matters where the Attorney General did not seek dissolution, are not similar for several reasons. Most notably, all involved settlements in which the charities agreed to overhaul their leadership, and none of the matters involved the scope and range of wrongdoing at issue in this action. The NRA cannot compare itself to resolved matters involving isolated wrongdoing because that is plainly not what the Attorney General alleges here.”

“The NRA’s repeated citation that two individual defendants in this action have left the NRA is irrelevant. The Complaint alleges misconduct involving many officers, directors, and employees and an absence of checks by the Board. See generally NYSCEF 333. The NRA ignores that the circumstances under which defendant Wilson Phillips left are the basis for allegations of misconduct. Phillips was allowed to retire of his own accord, with benefits, a pension and a lucrative “no show” consulting contract. Id. ¶¶ 230–251. Finally, two of the individual defendants are the current NRA chief executive officer and general counsel and secretary to the Board. Their continued direction of the NRA undermines the NRA’s argument that this action relates to isolated bad conduct by a handful of former executives.”

One thought on “NY Attorney General Replies On Motion To Dismiss NRA’s Counterclaims

  1. When she’s right, she’s right. It looks grim for the NRA. Hopefully the organizational structure can be saved and repopulated with officers and board members that will uphold the NRA’s original mission.


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