A New York state appellate court has rejected Wayne LaPierre’s appeal of the monetary judgment and injunction levied against him after a state jury in 2024 found that he violated his fiduciary duties in his role as an officer of the National Rifle Association (NRA).
One June 2, the Appellate Division, First Judicial Department of the New York State Supreme Court, upheld both a jury order requiring him to repay $4.3 million in damages to the NRA and a court order prohibiting him from holding any fiduciary position as an officer or director of the NRA or any NRA entity for 10 years.
LaPierre, the former executive vice president of the NRA, had argued in his appeal that the jury could not order him to pay monetary damages as part of the law requiring him to “account for” his conduct; rather he could only be required to explain his conduct. But the appellate court disagreed. The court said LaPierre misconstrued the scope and language of the statute and that the phrase “account for” is not so limited, as it also encompasses a “reckoning of funds and holding the violating officer responsible for the harm caused.” Thus, the court upheld the judgment that he repay $4.3 million of the total $5.4 million in harm he caused to the NRA, as he had already paid back about $1.1 million.
LaPierre also tried to argue that his resignation from his position on the eve of trial, which was effective four weeks into the jury trial, invalidated the court’s injunctive relief that keeps him from any fiduciary role in the NRA for 10 years. Again, the appellate court disagreed, finding that it is well settled that “voluntary cessation of allegedly illegal conduct does not deprive the tribunal of power to hear and determine the case, i.e., does not make the case moot,” since the “defendant is free to return to his old ways.”
The appellate court also noted that the 10-year ban does not burden LaPierre’s rights to freedom of speech and association since he remains a member of the NRA and is not precluded from making any public statements or involving himself in fundraising or other outreach.
New York Attorney General Letitia James brought the original suit against LaPierre, Chief Financial Officer Wilson Phillips, and Corporate Secretary John Frazer on behalf of the NRA.
The jury found that the NRA failed to properly administer charitable funds and protect whistleblowers, that the NRA and Frazer made false regulatory filings, and that LaPierre and Phillips, together, caused the organization $7.4 million in monetary harm. In addition to requiring LaPierre to pay $4.3 million, Phillips was ordered to pay $2 million plus interest.
The jury found that LaPierre misspent millions of the NRA’s funds on an extravagant lifestyle that included exotic getaways and trips on private planes and super-yachts.
“Wayne LaPierre and other senior NRA leaders broke the law by funneling millions of dollars in lavish perks to themselves and their families,” said Attorney General James. “This decision upholds the jury’s verdict and is another victory in our efforts to ensure that LaPierre is held accountable for his illegal self-dealing.”
In a statement sent to Insurance Journal, LaPierre’s lawyer Kent Correll said LaPierre will appeal and expects the claims against him will be eventually thrown out by the New York Court of Appeals or by the U.S. Supreme Court.
“We’ve already won the most important parts of this case. We intend to seek further review, and we are confident that we’ll prevail fully in the end,” Correll stated, noting that three of the four claims James asserted against LaPierre personally were dismissed.
Top Photo: Wayne LaPierre
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New York
Leadership
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