The National Rifle Association lawsuit that has reshaped the organization most is the civil fraud case brought by New York Attorney General Letitia James, which ended in February 2024 with a jury finding the NRA and three former executives liable for violating state nonprofit laws. Former CEO Wayne LaPierre was ordered to repay millions and banned from NRA leadership for a decade. That verdict, affirmed on appeal in June 2026, sits alongside a First Amendment case the NRA took to the Supreme Court, a federal suit the NRA has now filed against its own charitable foundation, and dozens of Second Amendment challenges the organization is bankrolling around the country.
The New York Fraud Case
James filed suit on August 6, 2020, alleging that LaPierre and other insiders had cost the nonprofit more than $64 million over three years through self-dealing and lax oversight. The complaint named LaPierre, former CFO Wilson “Woody” Phillips, former chief of staff Joshua Powell, and general counsel John Frazer.1NY Attorney General. Attorney General James Files Lawsuit to Dissolve NRA
The allegations against LaPierre included more than $500,000 in private jet trips to the Bahamas, African safaris, $3.6 million in luxury car services over two years, and a post-employment contract worth over $17 million secured without board approval. Phillips was accused of lying on financial disclosures, arranging a $1.8 million consulting deal for himself, and directing more than $1 million in NRA business to his girlfriend. Powell allegedly saw his salary triple from $250,000 to $800,000 while funneling money to family members through NRA vendors. The complaint described the NRA’s audit committee as a “rubber stamp” that had allowed 19 years to pass without internal auditing.1NY Attorney General. Attorney General James Files Lawsuit to Dissolve NRA
The NRA tried to escape New York’s jurisdiction by filing for Chapter 11 bankruptcy in Texas in January 2021. A federal bankruptcy judge dismissed that filing on May 11, 2021, ruling it had not been made in good faith and calling LaPierre’s decision to file without informing the board, CFO, or general counsel “nothing less than shocking.”2NY Attorney General. Attorney General James Wins Dismissal of NRA’s Fraudulent Bankruptcy Fight
The Verdict
Trial began in January 2024. LaPierre resigned days before it started. Powell had already settled for $100,000 and accepted a permanent ban from New York charitable boards.3ABC News. Jury Finds NRA Liable for Mismanagement, Wayne LaPierre Violated Duties
On February 23, 2024, a New York jury found the NRA, LaPierre, Phillips, and Frazer liable. The jury concluded that LaPierre had corruptly run the organization and caused it $5.4 million in damages, that Phillips had failed as a steward of NRA assets, and that the NRA itself had retaliated against whistleblowers, made false financial filings, and allowed insiders to improperly benefit. Evidence at trial showed LaPierre had signed off on millions in unauthorized overpayments to vendors and that the NRA had covered personal expenses for his wife, including limousine service, private jet travel, and hair and makeup costs.4The Trace. NRA Trial Verdict: LaPierre Ordered to Pay Damages
LaPierre was ordered to pay the NRA $4.35 million (the $5.4 million verdict minus roughly $1 million he had already repaid) plus nine percent annual interest, and was banned from serving as an NRA officer or director for 10 years.5NY Attorney General. Attorney General James Secures Court Victory Against NRA Phillips was ordered to pay $2 million plus interest and banned from serving as a fiduciary for any New York nonprofit for 10 years. He settled the injunctive portion of his case in July 2024, leaving the monetary verdict intact.6NY Attorney General. Attorney General James Announces Ban on Ex-NRA CFO Wilson Woody Phillips
Governance Reforms, No Dissolution
James had asked the court to dissolve the NRA outright and install an independent monitor. New York Supreme Court Justice Joel Cohen rejected both requests, ruling that a monitor would be “too time consuming, disruptive and costly to be effective” and that the NRA did not warrant dissolution.7Courthouse News. Judge: No NRA Monitor, but 10-Year Ban on Wayne LaPierre The NRA itself owed no fines or penalties under the final judgment.8Brewer Attorneys. NRA Prevails Over NYAG Bid for Dissolution
What Cohen did impose, in a December 11, 2024 judgment, was a package of more than a dozen governance reforms. The NRA must hire a court-approved compliance consultant. Anyone who served on the audit committee between 2014 and 2022 is permanently barred from returning to it. Audit committee members will now be elected by the full board rather than appointed by the president. The judgment also mandated changes to board election processes, greater transparency in nominations, online access to governance materials for directors, annual compliance reports on travel and procurement, executive certifications on regulatory filings, and protections for the chief compliance officer against retaliation. Any settlement between LaPierre and the NRA over the money he owes requires court approval.5NY Attorney General. Attorney General James Secures Court Victory Against NRA
LaPierre’s Appeal
On June 2, 2026, a unanimous panel of the Appellate Division, First Judicial Department, affirmed the judgment in full. The court rejected LaPierre’s argument that New York’s nonprofit statutes do not authorize monetary damages, holding that the statutory mandate to “account for” official conduct covers responsibility for losses caused by fiduciary breaches. It also dismissed his free speech, association, and retaliatory-prosecution arguments, noting the 10-year ban does not prevent him from making public statements or participating in fundraising. His mid-trial resignation did not moot the need for injunctive relief, the court added, particularly given his suggestion that he might return to the NRA if his health improved.9NY Attorney General. People v. National Rifle Association of America, Inc., Appellate Division Decision and Order
NRA v. Vullo
The NRA’s other headline case ran in the opposite direction: the NRA was the plaintiff. It sued Maria Vullo, the former superintendent of the New York Department of Financial Services, alleging she had coerced regulated financial institutions into cutting business ties with the organization to punish its gun-rights advocacy.
The Supreme Court ruled unanimously for the NRA on May 30, 2024, holding that the organization had plausibly alleged a First Amendment violation. Applying the 1963 framework from Bantam Books, Inc. v. Sullivan, the Court found that Vullo’s alleged offer to overlook unrelated insurance infractions in exchange for companies severing ties with the NRA amounted to coercion, not permissible advocacy, and sent the case back to the Second Circuit.10Supreme Court of the United States. NRA v. Vullo, No. 22-842
The Second Circuit reached the same dismissal by another route on July 17, 2025, ruling Vullo was entitled to qualified immunity because the First Amendment rights at issue had not been “clearly established” at the time of her conduct.11ABA Banking Journal. Second Circuit Dismisses NRA’s Free Speech Lawsuit Against New York Official The Supreme Court denied the NRA’s second cert petition on February 23, 2026, ending the case.12SCOTUSblog. National Rifle Association of America v. Vullo (Cert Petition)
The NRA v. NRA Foundation Suit
On January 5, 2026, the NRA filed a federal lawsuit in Washington, D.C. against the NRA Foundation, a related nonprofit that has historically funneled grant money to NRA programs. The NRA accused the Foundation’s leadership of trademark infringement, unfair competition, and misuse of approximately $160 million in donor funds, alleging the Foundation had been “seized by a disgruntled faction of former NRA directors” who lost their board seats after the financial scandals and were now trying to cut off NRA funding and compete against it. The complaint said the Foundation had declined to approve any 2026 grant funding for the NRA.13NBC News. National Rifle Association Sues NRA Foundation in Federal Court
The Foundation moved to dismiss. After the NRA filed an amended complaint adding federal trademark and cybersquatting claims, the Foundation filed a second motion to dismiss in March 2026. Judge Sparkle L. Sooknanan denied the NRA’s motion for partial summary judgment without prejudice and, as of June 2026, had ordered both sides to brief whether the court has jurisdiction over the D.C.-law claims. The Foundation also filed a notice of name change.14Court Listener. National Rifle Association of America v. NRA Foundation Docket
Other Pending Litigation
Marion Hammer
Former NRA President Marion Hammer sued the organization in May 2025 after it stopped paying on a consulting contract she said had been extended by 10 years in 2018. Her seven-count complaint included breach of contract, unjust enrichment, and unauthorized use of her name and likeness. The NRA countered in a separate Virginia proceeding, alleging Hammer and LaPierre had conspired to have her “improperly receive excess benefits” and that she had “fraudulently induced” the organization into the agreement.15Tallahassee Democrat. NRA and Gun Lobbyist Marion Hammer in Settlement Talks The Florida case settled in March 2026 and was dismissed with prejudice in April 2026.16Court Listener. Hammer v. National Rifle Association Docket The Virginia proceeding involving the NRA’s fraud claims was still ongoing at the time of settlement.
Second Amendment Cases
The NRA and its affiliates are involved in gun-rights litigation at every level of the federal judiciary. As of mid-2026, four petitions for Supreme Court review are pending, challenging Maryland’s carry restrictions, California’s ban on magazines holding more than 10 rounds, Florida’s prohibition on firearm purchases by adults under 21, and federal restrictions on short-barreled rifles under the National Firearms Act.17NRA-ILA. Current Litigation
In the circuits, the NRA is backing challenges to assault-weapon bans in Massachusetts, Illinois, Delaware, Washington state, and Virginia; handgun restrictions in California and Maryland; New York’s Concealed Carry Improvement Act; and Oregon’s Measure 114 permit-to-purchase law. The NRA’s Colorado affiliate filed a constitutional challenge to House Bill 26-1126, a 2026 law imposing new licensing, record-keeping, and security requirements on firearms dealers, arguing that a provision granting law enforcement warrantless access to purchase records violates the Second and Fourth Amendments.18Colorado Politics. Colorado State Shooting Association Files Constitutional Challenge to Firearms Dealer Law
Financial and Leadership Fallout
The legal battles have hit the NRA’s bottom line. Revenue has declined for six consecutive years, and the 2024 revenue for the main 501(c)(4) entity was less than half of its 2016 peak. Membership dues fell to $51.7 million in 2024, down 16 percent from $61.8 million in 2023, and dues revenue is now 30 percent of what it was in 2018. Membership is at a 16-year low.19The Reload. NRA Financial Spiral Slows as Reformers Cement Control
The organization liquidated roughly $40 million in investments during 2024 to cover its bills and narrowed its operating deficit from $33 million in 2023 to $6.6 million.20Yahoo Finance. NRA Forced to Sell Off Investments Legal expenses have been a major driver: the NRA paid Brewer Attorneys and Counselors over $32 million in 2024 alone, and the six-year relationship with the Brewer firm ended in December 2024.21The Reload. NRA, Controversial Law Firm Part Ways After Six Years In the 2024 election cycle, the NRA reported roughly $10.2 million in outside spending, a fraction of the more than $29 million it spent on the 2020 general election.22OpenSecrets. National Rifle Association Summary
Doug Hamlin, a former U.S. Marine Corps officer who joined the NRA as executive director of its publications division, was elected executive vice president and CEO after LaPierre’s departure and unanimously reelected in April 2026.23American Rifleman. Bill Bachenberg Unanimously Reelected NRA President, Doug Hamlin Unanimously Reelected as NRA Executive Vice President and CEO Bill Bachenberg of Pennsylvania, aligned with the reform wing, was elected board president in spring 2025.24Hunter Nation. Bill Bachenberg Elected NRA President: A Win for Hunters Hamlin said the NRA reached a balanced budget for 2025 and projected another for 2026. The chief compliance officer reported 58 wrongdoing complaints in 2024, 83 percent of them at least partially substantiated. LaPierre, despite his resignation and the court-ordered ban, received nearly $1.2 million in total compensation from the NRA in 2024, including $811,000 from his retirement plan and $150,000 in accrued vacation pay.19The Reload. NRA Financial Spiral Slows as Reformers Cement Control