Case Summary

As a result of the sprawling evidence of financial mismanagement, self-dealing, and questionable business practices, New York Attorney General Letitia James launched an investigation into whether the NRA violated New York’s charities law in 2019.

On August 6, 2020, the New York Attorney General filed a complaint against the NRA in New York State Supreme Court (New York County) on August 6, 2020.  The AG’s complaint charges 18 causes of action against the NRA and four executives (CEO Wayne LaPierre, General Counsel John Frazer, former Chief of Staff Josh Powell, and former CFO Woody Phillips). While the complaint contains nearly 700 paragraphs, the factual allegations largely center around widespread looting of the NRA as a charity, with CEO LaPierre as the ringleader of that activity. The complaint alleges improper personal benefits for senior NRA executives, including that NRA leaders used vendors and contractors to hide improper expenditures, self-dealing, and related party transactions. According to the complaint, “LaPierre effectively dominates and controls the NRA Board as a whole through his control of business, patronage and special payment opportunities for board members, and his public allegations to the NRA membership of a ‘criminal conspiracy’ against board members and officers who question his activities.”

Between 2020 and 2023, the case moved tediously through motion practice, discovery, and pre-trial motions – many of which are featured on NRA Watch under the “Filings” category. In early 2024, a full blown trial was conducted. At the eve of trial, Josh Powell settled with the Attorney General, acknowledging wrongdoing and paying a monetary fine. In addition, just days before the trial began, NRA CEO Wayne LaPierre resigned.

After a six-week trial in early 2024, a jury found:

• The NRA was found LIABLE for failing to properly administer charitable assets.
• All three individual defendants (former CEO Wayne LaPierre, former CFO Woody Phillips, and current General Counsel John Frazer) were found LIABLE of breach of fiduciary duties to the NRA.
• With respect to damages for this claim, the jury found that LaPierre and Phillips owed the NRA millions for ill-gotten benefits. More specifically, in the time period at issue, they found that LaPierre caused $5.4 million in damages, and Philips caused $2 million in damages.
• The jury found cause for LaPierre to be removed from the NRA (LaPierre has already stepped down). Conversely, the jury found there was no cause for General Counsel Frazer to be removed (despite their finding that he breached his fiduciary duties).
• The NRA was found LIABLE for not having proper whistleblower protections in place.  
• The NRA was found LIABLE for failing to evaluate whistleblower claims and/or retaliation against several whistleblowers.
• The NRA and Frazer were found LIABLE for making false filings to New York State.
• LaPierre, Phillips and the NRA engaged in wrongful related party transactions.

However, for certain (but not all) transactions involving the NRA, the jury found that the NRA properly ratified these transactions after the fact.

With respect to Wayne LaPierre’s post-employment golden parachute contract, the jury found the NRA was engaging in a wrongful related party transaction. However, the jury found that the AG had not proved that the contract was not approved prior by the NRA Board.

The filings on this page are a selection of the more significant filings in the matter.  The full docket can be accessed at the New York courts website here.