New York appeals court rules there is "ample evidence of malfeasance"
A New York state court will move forward
with a case brought by the state against the National Rifle Association,
following an appeals court ruling on Thursday that rejected the powerful
pro-gun group's claim that the probe violated its First Amendment rights.
Adam Zyglis
A panel of five judges in the Appellate
Division in Manhattan unanimously ruled that
state Attorney General Letitia James has probable cause to investigate the NRA
over allegations that it diverted millions of dollars to fund the lavish
lifestyles of executives including Wayne LaPierre, its chief executive officer.
James sued the NRA in August 2020, saying
executives also failed to obtain board approval for conflicts of interest and
retaliated against whistleblowers who spoke out against allegations of
financial misconduct. She is seeking an overhaul of the NRA's leadership,
including the removal of LaPierre.
The appeals court said James has provided
"ample evidence of malfeasance" at the organization, and has
authority to enforce state laws governing nonprofits.
The NRA has claimed James' case against it is politically motivated. James unsuccessfully attempted to have the NRA dissolved through the court system in 2022.
The court on Thursday noted that other
nonprofits have restructured their leadership, but the NRA has so far refused
to do so.
The judge who ruled against dissolving the
NRA, Justice Joel Cohen, will hear the corruption case on January 8.
In June, Cohen denied motions by the NRA
that claimed James' investigation was unconstitutional and politically
motivated, saying the NRA could not make those claims as a defense at the
upcoming trial.
The NRA, James said at the time,
has "used every tool and trick to try and avoid the consequences of their
bad actions."
"I will continue to fight
tirelessly," she added, "to bring the NRA and its senior executives
to justice and ensure all people, companies, and not-for-profits adhere to the
rule of law in New York."