Cannot End Well for Anyone - 05/23/19
From the "Wall Street Journal"
By Mark Maremont
Updated May 23, 2019 1:10 p.m. ET
The National Rifle Association filed a lawsuit accusing its longtime advertising firm of orchestrating a failed executive coup at the gun-rights group and leaking details about lavish expenses, as part of an alleged attempt to “tarnish and ultimately destroy the public image of the NRA and its senior leadership.”
The lawsuit against Ackerman McQueen Inc., filed Wednesday in a local court in Alexandria, Va., is the latest salvo in a battle between the NRA and the ad firm.
In a separate action last month, the NRA had sued Ackerman and claimed the agency had failed to provide records justifying its bills. Ackerman has called that suit frivolous and inaccurate.
Ackerman McQueen fired back Thursday in its first legal response in that earlier action, saying it had complied with all legitimate NRA records requests. It accused the NRA of using the litigation as a tactic to terminate its contract without proper compensation.
The rancor between the NRA and Ackerman, a key partner of the gun-rights group for more than 30 years, caused strife at the NRA’s annual meeting last month.
At the meeting, then-NRA president Oliver North left the organization after he called for the board to investigate claims that NRA CEO Wayne LaPierre had charged more than $500,000 in wardrobe and travel expenses to the advertising firm.
Mr. LaPierre and his allies said the expenses were appropriate and that Mr. North was trying to extort the CEO into resigning.
The NRA, in the new lawsuit, claims the “executive coup” attempt was part of a conspiracy led by Ackerman McQueen to derail the NRA’s own inquiry into the ad firm’s business and accounting practices.
The NRA also claimed that Ackerman McQueen after the annual meeting began to deliver on its “extortion threats” and “cynically leaked selected portions of confidential business records.”
The Wall Street Journal was among the media outlets to which the NRA accused Ackerman of “directly or indirectly” leaking confidential information.
The Journal published an article earlier this month about Ackerman McQueen letters sent to the NRA related to Mr. LaPierre’s more than $500,000 in alleged wardrobe and travel expenses. The letters had been posted anonymously on the internet.
A spokesman for Dow Jones & Co. declined to comment. Dow Jones is owned by News Corp, publisher of The Wall Street Journal.
In a statement, Ackerman called the new lawsuit “another reckless attempt to scapegoat Ackerman McQueen for the NRA’s own breakdown in governance, compliance and leadership.”
In its legal filing Thursday, Ackerman said the NRA’s first lawsuit wasn’t properly authorized by the NRA’s board of directors, as required under New York nonprofit law, and therefore should be dismissed. Ackerman also accused the NRA of leaking to the media the ad firm’s own confidential information.
Ackerman said it was seeking $50 million in damages plus another $50 million in punitive damages. The NRA in its latest lawsuit said it was seeking $40 million in damages from its ad firm.
Separately, key leaders of the NRA’s board, including its current president and nine past presidents, sent a letter to all NRA members Wednesday reiterating their support for Mr. LaPierre and saying: “A campaign to oust him failed—as the facts emerged, true motivations became apparent, and we agreed as to who should lead our fight for freedom. We are now moving forward.”
By Mark Maremont
Updated May 23, 2019 1:10 p.m. ET
The National Rifle Association filed a lawsuit accusing its longtime advertising firm of orchestrating a failed executive coup at the gun-rights group and leaking details about lavish expenses, as part of an alleged attempt to “tarnish and ultimately destroy the public image of the NRA and its senior leadership.”
The lawsuit against Ackerman McQueen Inc., filed Wednesday in a local court in Alexandria, Va., is the latest salvo in a battle between the NRA and the ad firm.
In a separate action last month, the NRA had sued Ackerman and claimed the agency had failed to provide records justifying its bills. Ackerman has called that suit frivolous and inaccurate.
Ackerman McQueen fired back Thursday in its first legal response in that earlier action, saying it had complied with all legitimate NRA records requests. It accused the NRA of using the litigation as a tactic to terminate its contract without proper compensation.
The rancor between the NRA and Ackerman, a key partner of the gun-rights group for more than 30 years, caused strife at the NRA’s annual meeting last month.
At the meeting, then-NRA president Oliver North left the organization after he called for the board to investigate claims that NRA CEO Wayne LaPierre had charged more than $500,000 in wardrobe and travel expenses to the advertising firm.
Mr. LaPierre and his allies said the expenses were appropriate and that Mr. North was trying to extort the CEO into resigning.
The NRA, in the new lawsuit, claims the “executive coup” attempt was part of a conspiracy led by Ackerman McQueen to derail the NRA’s own inquiry into the ad firm’s business and accounting practices.
The NRA also claimed that Ackerman McQueen after the annual meeting began to deliver on its “extortion threats” and “cynically leaked selected portions of confidential business records.”
The Wall Street Journal was among the media outlets to which the NRA accused Ackerman of “directly or indirectly” leaking confidential information.
The Journal published an article earlier this month about Ackerman McQueen letters sent to the NRA related to Mr. LaPierre’s more than $500,000 in alleged wardrobe and travel expenses. The letters had been posted anonymously on the internet.
A spokesman for Dow Jones & Co. declined to comment. Dow Jones is owned by News Corp, publisher of The Wall Street Journal.
In a statement, Ackerman called the new lawsuit “another reckless attempt to scapegoat Ackerman McQueen for the NRA’s own breakdown in governance, compliance and leadership.”
In its legal filing Thursday, Ackerman said the NRA’s first lawsuit wasn’t properly authorized by the NRA’s board of directors, as required under New York nonprofit law, and therefore should be dismissed. Ackerman also accused the NRA of leaking to the media the ad firm’s own confidential information.
Ackerman said it was seeking $50 million in damages plus another $50 million in punitive damages. The NRA in its latest lawsuit said it was seeking $40 million in damages from its ad firm.
Separately, key leaders of the NRA’s board, including its current president and nine past presidents, sent a letter to all NRA members Wednesday reiterating their support for Mr. LaPierre and saying: “A campaign to oust him failed—as the facts emerged, true motivations became apparent, and we agreed as to who should lead our fight for freedom. We are now moving forward.”