Re: NRA Lawsuit
Posted: Fri Dec 16, 2022 9:54 am
Basically the NRA’s “reform plans” have all been discussed in front of their attorneys so that makes it “privileged information”?Attorney-client privilege protects the ability of attorneys and clients to communicate, and generally results in those conversations being “off limits” to courts and to their opponents.
It sounds as if NRA’s leadership is getting attorneys involved at every level of its decisions, and then arguing that the decisions cannot be probed. It’s insisting that it has reformed and made a 360 degree turn (why it chose that simile is beyond us, since that turn just puts you back on the same course), but if NY wants to probe that, “you can’t see that because all our reforms were based on the advice of our attorneys.”
There was a fight over the “Note Of Issue,” the document certifying that all discovery is done, and must be filed in order to get a trial date set. NRA’s attorneys are still fighting NY’s attempts (successful to date) to get certain documents, especially the “Frenken Report.” As we’ve noted before, that 2003 report must be hot, if they are fighting to keep it secret nearly 20 years later. The fact that its author was an attorney hired by NRA, who specialized in white-collar criminal defense, may give us a clue. . . . He must have said, “you are SOOO screwed.”
NRA’s attorneys have been trying to delay as much as possible (they know they’ll get killed at trial), while telling the board that NY is dragging its feet. In this exchange they argued the Note Of Issue shouldn’t be filed until those discovery disputes were settled. The judge disagreed, and ordered the Note filed, with NY allowed to reserve the right to finish the discovery fight while the trial date approaches. NY filed it early.
NRA’s attorneys had requested a jury trial (which is insane–why did they want to try this to a Manhattan jury?), and the Note Of Issue reflects this. A jury trial it is.
Yet another loss in the case, and a bad move stuck down the attorneys’ throats. NY gave them what they asked for, good and hard.
From the Treasurer’s report to the Finance Committee (we don’t know if this was made available to directors in general) comes this chart. It omits 2018, when NRA revenues topped $350 million. The scandals began to be revealed in mid-2019, and the hit on revenues began, worsening with each passing year.
Total revenues have gone from about $280 million to $180 million, a disaster. What’s driving the drop are declines in member dues (green) and contributions (blue). Each was once over $100 million, and now are more like $60 and $70 million. At the same time, legal expenses are skyrocketing. The 2022 budget had allowed the Office of General Counsel (meaning legal expenses, total) a huge $31 million for the year, but by November it had already spent $48.4 million. Another way to look at it: legal expenses now equal nearly as much as total contributions, and about 2/3 of member dues. Nearly one-third of NRA total revenues go to paying its attorneys.
Update, from the same report to Finance Committee, it is quite clear that membership continued to fall throughout 2022. The 2022 budget had predicted 459,000 new members by the end of November. Actually, only 282,000 joined, a shortfall of 176,000, or 38%. Renewals also fell short, by 164,000 below predictions.
I wonder if anyone is tracking increases in revenue for other 2A organizations and comparing them, side-by-side, with decreases in NRA revenue. In the current anti-gun political environment, I would hope the total revenue would be growing.It’s hard to see the 152-year old organization still being alive through 2023.
"The BOD audit committee (chaired by the current President Charles Cotton) approved transactions retro actively without BOD approval."KBCraig wrote: ↑Wed Jan 25, 2023 12:21 am Sometimes lawyers need lawyers.
I can think of at least one who should definitely lawyer-up.
https://nraindanger.wordpress.com/2023/ ... situation/