ACLU comes to the NRA's defense: https://www.wsj.com/articles/the-nra-has-a-right-to-exist-11598457143?mod=opinion_lead_pos7 The NRA Has a Right to Exist New York Attorney General Letitia James’s attempt to dissolve the 150-year old organization is unconstitutional government overreach. By David Cole Aug. 26, 2020 11:52 am ET The American Civil Liberties Union rarely finds itself on the same side as the National Rifle Association in policy debates or political disputes. Still, we are disturbed by New York Attorney General Letitia James’s recent effort to dissolve the NRA. Ms. James’s office charges that NRA Executive Vice President Wayne LaPierre and other officials misdirected millions of the organization’s charitable funds for their personal use. But the attorney general’s complaint doesn’t stop there. It attempts to dissolve the NRA altogether, thereby penalizing the entire organization for the wrongs of some of its leaders. The NRA isn’t popular with New York’s politicians. Ms. James has called it a “terrorist organization.” Gov. Andrew Cuomo had his chief financial regulator urge New York banks and insurers to reconsider doing business with the NRA and other “gun promotion” groups, and proclaimed in a campaign mailer that “If the NRA goes bankrupt, I will remember them in my thoughts and prayers.” You may have your own opinions about the NRA, but all Americans should be concerned about this sort of overreach. If the New York attorney general can do this to the NRA, why couldn’t the attorney general of a red state take similar action against the ACLU, the AFL-CIO, Common Cause, or Everytown for Gun Safety? Our democracy is premised on the right of association. The First Amendment protects not only the right to speak, but also to band together with others to advance one’s views. Making or resisting change in a democracy requires collective action, and a healthy democracy therefore demands a robust “civil society.” The right to associate can’t survive if officials can shut down organizations with which they disagree. The Supreme Court has notably invoked that right to protect union members, Communist Party adherents, the Boy Scouts and the NAACP. That’s why two years ago, we supported the NRA’s lawsuit charging Gov. Cuomo with violating its First Amendment rights. Mr. Cuomo moved to dismiss the case, but a federal judge ruled against him, holding that if he targeted the NRA for its gun-promoting views, he violated its First Amendment rights. And that’s why we believe Ms. James has also gone too far. Dissolution of a nonprofit is the most extreme remedy state regulators can seek. It has historically been reserved for organizations that are essentially false fronts for personal gain. The NRA is different. It’s been around for more than 150 years and has millions of members. It engages in a range of lawful and properly tax-exempt pursuits, including teaching gun safety, operating shooting ranges, educating the public, and lobbying for laws that protect gun rights. If some of its leaders have become corrupt, they should be removed. If its board was incompetent in checking their abuses, it should be reformed. Dissolution is proper only where a corporation is so subsumed by waste, misuse or fraud that it no longer fulfills a charitable purpose. There is simply no precedent for such extreme action against an organization like the NRA, which, whether you like it or not, has been serving charitable purposes very effectively (indeed, many of its opponents would say, too effectively) for a century and a half. And even if the threat of dissolution is meant only to gain leverage for a deal, threats of unconstitutional action ought not be a part of the attorney general’s arsenal. The right to associate is a right for all, not just for those whom government officials favor. Mr. Cole is national legal director of the ACLU.
https://theweek.com/lawsuits/1010846/no-corporate-death-penalty-for-the-nra-new-york-judge-rules No 'corporate death penalty' for the NRA, New York judge rules 5:59 PM by Grayson Quay A New York judge rejected New York Attorney General Letitia James's attempt to dissolve the National Rifle Association in a ruling issued Wednesday, The Wall Street Journal reports. According to the Journal, James sued the gun rights group and four of its highest-ranking former and current officials in 2020, accusing the NRA of "illegally diverting tens of millions of dollars from the group through excessive expenses and contracts that benefited relatives or close associates." These alleged abuses include NRA President Wayne LaPierre's failure to disclose several free "security retreats" he took on a 108-foot yacht owned by Hollywood producer David McKenzie. New York state law allows the attorney general to bring an "action for judicial dissolution" — also known as the "corporate death penalty" — against any corporation that has "conducted or transacted its business in a persistently fraudulent or illegal manner." The NRA was first chartered as a nonprofit in New York in 1871. The gun-rights group tried to duck James' lawsuit last year by declaring bankruptcy in Texas and then reincorporating there, but a federal bankruptcy judge dismissed the petition, ruling that it "was not filed in good faith." During the trial in Texas, several witnesses testified that the NRA uses its tax-exempt funds to pay for tropical vacations, private airplanes, and weddings. Although New York Supreme Court Judge Joel M. Cohen declined to dissolve the NRA due to concerns about the "free speech and assembly rights" of NRA members, he did allow the rest of James' lawsuit against the group to proceed.
