By Jonathan Stempel
NEW YORK (Reuters) - A New York state judge decided not to impose an outside monitor for the National Rifle Association, handing a victory to the gun rights group, while banning former chief Wayne LaPierre from serving as an NRA officer or director for 10 years.
Monday's decision by Justice Joel Cohen of the Manhattan Supreme Court was a mixed outcome for state Attorney General Letitia James in her four-year-old civil case.
Cohen ruled without a jury following the second stage of a trial.
In the first stage, jurors in February found LaPierre and others liable for years of financial mismanagement, including the bankrolling of an extravagant lifestyle for LaPierre that included luxury travel and expensive clothing.
Jurors ordered LaPierre to repay $4.35 million to the NRA, and retired finance chief Wilson Phillips to repay $2 million.
James said the judge directed both sides to negotiate governance changes that could lead to the NRA's shrinking its board, and make it easier for candidates to seek board seats.
The attorney general sued the NRA in August 2020, under her authority to oversee non-profits registered in New York.
She said the group was beset by greed, lax oversight, and cronyism designed to enrich and entrench insiders.
"After years of corruption, the NRA and its senior leaders are finally being held accountable," James said after Cohen's decision.
The NRA had long viewed the lawsuit as political payback because James, a Democrat, disliked what it stood for.
Founded in 1871, the NRA has seen its influence diminish in recent years, including in the Republican Party, as membership and revenue fell.
"We recognize the importance of the jury's findings and will continue our commitment to good governance," NRA President Bob Barr said after Monday's decision.
A lawyer for LaPierre did not immediately respond to requests for comment.
LaPierre, 74, led the NRA for more than three decades before resigning in January, a few days before the trial's first stage.
He and the group often adopted contrary legal positions in court, though both were defendants.