The leadership of the National Rifle Association is facing new challenges in its fight for survival.
In 2019, allegations surfaced that NRA officials, including Wayne LaPierre, had diverted millions of NRA funds towards personal luxury. The group’s leadership has been faced with a number of challenges since then.
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NRA Board Members Walk, while New York Continues to Push to Sink the Organization. LaPierre
They engaged in a public struggle with reformers from their own membership, who attempted to expel LaPierre and other members at the last full-scale meeting. Letitia James, a New York Attorney General and Democrat who has a long-standing grudge against the group filed a dissolution lawsuit.
Soon after the pandemic caused shutdowns, NRA’s fundraising took an important hit, forcing it into drastic staff reductions. Many of these people are still not being hired back.
The group’s lawyers decided to file for bankruptcy to avoid the AG’s suit. Dissenting board members saw an opportunity and tried to convince a judge that they could effectively overrule leadership and take control of the organization.
The bankruptcy case was thrown out by the judge. They’re now back at square one in the New York case. The leadership is intact.
However, their problems do not stop.
Hits Continue to Mount
Just days before the scheduled start, the group cancelled its Annual Meeting. This was just days after the group lost several members of its board including Ted Nugent, Susan Howard, and others. This happened shortly after Lloyds of London decided not to renew its Directors and Officers Insurance policy.
The NRA claimed it had successfully replaced D&O insurance. The NRA refused to share copies with board members over what John Frazer, NRA General Counsel, described as “confidentiality issues.” This has led to renewed dissension from some board members, including Rocky Marshall who was part in the attempt to take control of the group’s leadership during bankruptcy. Marshall was quoted as saying that he was angry at the lack of transparency in a story by The Reload.
He stated earlier this month that he was shocked to be denied information as a member of the board of directors. This is especially true in this case, where the information they withhold is directly related to his role as a fiduciary. “The reasons they gave for claiming it was confidential were completely fabrications. It’s all BS. Directors have the right to absolute inspection. That’s it. That’s their entire job.”
The majority of the 76-member board members rarely attend board meetings. Even the emergency meeting to discuss LaPierre’s bankruptcy, which he had filed without obtaining approval from the board or informing them, was held without the presence of many members. In a show of continued support, those who attended voted overwhelming to retroactively approve the filing.
Failed Bankruptcy Is a Sign of Trouble
The organization was hit with legal fees of more than $20 million for the failed bankruptcy plan. This adds to the financial strain that the group is already feeling. Between 2016 and 2020, the group suffered a revenue loss of over $80million.
It will be harder to make up the gap now that it has missed its biggest fundraising event for two consecutive years. Its membership has not increased from 2013.
In recent weeks, the NRA has had some political successes. Texas passed permitless concealed carry, with the support of the group, which also included many pro-gun groups. LaPierre was there alongside Governor Greg Abbott (R.). After moderate Democratic senators refused him, President Joe Biden (D.), withdrew David Chipman, his nominee for ATF director. Many groups, including the National Shooting Sports Foundation lobbied strongly against the nomination. The NRA’s campaign to target key democrats to reject Chipman had some effect.
These victories were significant and the NRA will need all the support it can get as the New York case heats up. The AG took many of the revelations made during the bankruptcy of the NRA and included them in a new brief for her case. The document, which is 187 pages long, outlines the breadth of allegations against the NRA.
It is extremely risky to close down an organization as large and important as the NRA, especially when it comes directly from one of their political advisors, even though all the allegations against its leadership have been proven in court. LaPierre and others have admitted to at least some misuse NRA funds. The failed long-shot bankruptcy strategy is a sign of how well the group’s lawyers think the case will proceed.
