DC AG Opposition to NRA’s Motion to Dismiss
The Washington D.C. Attorney General responded to the NRA’s Motion to Dismiss Counts IV and V of its complaint against the NRA and NRA Foundation. The DCAG restated the core of its allegations that “the NRA has experienced financial problems in recent years, largely arising from declining membership and its own poor management and lavish spending. The NRA repeatedly turned to the Foundation’s funds to solve its financial problems….” (p.1)
Of note, the DCAG pointed to its case (and a recent ruling) against the 58th Presidential Inaugural Committee as precedent for its seeking a constructive trust in the NRA litigation. (p.3). The DCAG also takes issue with the NRA’s reliance on the business judgement rule, among other reasons, because the doctrine “is not a defense against allegations that nonprofit corporate has ‘abandoned its charitable purpose.’” (internal citations omitted) (p.5).
The DCAG characterizes its own complaint as alleging “that NRA officials had direct involvement in exploiting the Foundation’s funds for the NRA’s own purposes and in encouraging and assisting the Foundation board in subordinating its public purposes to the NRA’s concerns about its lack of financial health.” The filing goes on to say “as a result of these wrongful acts, millions of dollars of the Foundation’s funds were conveyed to the NRA.” (p.8)