- A judge on Wednesday nixed NY AG Letitia James' bid to dissolve the NRA.
- The judge says dissolving the NRA could impinge on the free speech rights of millions of members.
- The NRA lost its bid to toss AG's larger lawsuit, which seeks to punish former leader Wayne LaPierre.
In a blow to New York Attorney General Letitia James, a judge on Wednesday refused to dissolve the National Rifle Association, saying that to do so could jeopardize the free speech rights of the gun organization's millions of members.
In his decision, Manhattan Supreme Court Justice Joel M. Cohen kept James' 2020 lawsuit alive, but found it "does not allege the type of public harm that is the legal linchpin for imposing the 'corporate death penalty.'"
"Morover," Judge Cohen continued, "dissolving the NRA could impinge, at least indirectly, on the free speech and assembly rights of its millions of members."
Still, the judge's ruling had harsh words for the NRA and its former leadership, who James accuses of siphoning off millions of dollars from the organization to fund their lavish lifestyles.
"The Attorney General's allegations in this case, if proven, tell a grim story of greed, self-dealing, and lax financial oversight at the highest levels of the National Rifle Association," the judge wrote in the ruling, which was obtained by Insider.
"They describe in detail a pattern of exorbitant spending and expense reimbursement for the personal benefit of senior management," Judge Cohen wrote, "along with conflicts of interest, related party transactions, cover-ups, negligence, and retaliation against dissidents and whistleblowers who dared to investigate or complain."
The judge's decision allows most of what remains of James' lawsuit to continue, despite the NRA's repeated efforts to get it tossed entirely.
That includes James' claims that Wayne LaPierre, the group's former executive vice president, and three other former NRA executives violated New York state law concerning not-for-profit corporations.
James wants the executives to pay back what she says they pocketed; she also wants them to be barred permanently from ever working for another New York not-for-profit.
The NRA, which has fought the lawsuit vigorously, including by filing for bankruptcy, did not immediately respond to the ruling.
James said in a statement that she is weighing whether to appeal the portion of Judge Cohen's decision that keeps the NRA alive.
"Today, the court affirmed my office's right to pursue its long-standing claims that fraud, abuse, and greed permeate through the NRA and its senior leadership," the statement said.
"While we're heartened that the judge rejected the NRA's attempts to thwart most of the claims in our case against the NRA, we are disappointed that the judge ruled against the dissolution portion of the case," James' statement said.
"We are considering our legal options with respect to this ruling," the statement added. "We remain committed to enforcing New York law regardless of how powerful any individual or organization may be."