By Jonathan Stempel
NEW YORK (Reuters) – A New York state judge ruled against imposing an outside monitor on the National Rifle Association, handing the gun rights group a victory while barring its former president, Wayne LaPierre, from serving as an officer or director of the group for 10 years.
The decision Monday by Manhattan Supreme Court Judge Joel Cohen was a mixed result for state Attorney General Letitia James in her four-year-old civil case.
Cohen issued his verdict without a jury following the second phase of the trial.
In the first phase, a jury in February found LaPierre and others liable for years of financial mismanagement, including funding an expensive lifestyle for LaPierre that included luxury travel and expensive clothing.
The jury ordered LaPierre to pay $4.35 million to the National Rifle Association, and retired finance chief Wilson Phillips was ordered to pay $2 million.
James said the judge directed the two sides to negotiate governance changes that would reduce the size of the NRA’s board and make it easier for candidates to get seats on the board.
The attorney general filed a lawsuit against the NRA in August 2020, under her authority to oversee nonprofits registered in New York.
She said the group was plagued by greed, lax oversight and cronyism designed to enrich and entrench insiders.
“After years of corruption, we can finally hold the NRA and its top leaders accountable,” James said after Cohen’s ruling.
The NRA has long viewed the lawsuit as political retaliation because James, a Democrat, didn’t like what the suit represented.
The National Rifle Association, founded in 1871, has seen its influence wane in recent years, including within the Republican Party, with membership and revenue declining.
“We recognize the importance of the jury’s findings and will continue our commitment to good governance,” National Rifle Association President Bob Barr said after Monday’s decision.
LaPierre’s attorney did not immediately respond to requests for comment.
LaPierre, 74, was the leader of the National Rifle Association for more than three decades before resigning in January, just days before the first phase of the trial.
He and the group often took conflicting legal positions in court, even though both were defendants.