On 8/6, New York Attorney General Letitia James announced a landmark lawsuit against the National Rifle Association. Cindy M. Lott, Esq., Associate Professor of Professional Practice and Academic Director of the Nonprofit Management program, discusses the legal implications of the civil complaint with Bloomberg Tax.
The complaint, filed in State Supreme Court in Manhattan, cites extensive fraud and self-dealing. On behalf of the state of New York, James seeks to dissolve the NRA on legal grounds of governance, including failure to adhere to statutory duties of care, loyalty, obedience and diversion of assets. James and Charities Bureau Chief James Sheehan, who is a guest lecturer in the Nonprofit Management program, seek disposition, restitution, and injunction.
The legal experts interviewed, including Lott, agree that the suit will likely be settled without going as far as shutting down the NRA completely.
The complaint is one of the biggest legal threats the gun rights organization has faced since its founding. Lott says there are other ways the NRA could emerge from the lawsuit aside from completely disbanding. "'There is a spectrum of remedies available,' said Lott, who previously served as executive director to the national state attorneys general program at Columbia Law School, specializing in charities regulation. One option is to seek a 'reset' without the current leadership, she said. 'It’s a wildly popular nonprofit that does a lot of work for a lot of people,' Lott said. 'It’s not all or nothing.'"
There is a spectrum of remedies available... It’s a wildly popular nonprofit that does a lot of work for a lot of people. It’s not all or nothing.
— Cindy M. Lott, Esq, Associate Professor of Professional Practice and Academic Director, Nonprofit Management
For example, if the NRA is offered terms such as appointing new leadership or paying steep fines, it might avoid the costly trial. The NRA has since filed a countersuit against the state of New York.
Read the full article in Bloomberg Tax, and learn more about the M.S. in Nonprofit Management.
