NRA Settles D.C. Lawsuit, Agreeing to Overhaul Charity Accused of Mishandling Funds

The National Rifle Association reached a settlement on Wednesday with the District of Columbia’s attorney general, agreeing to make governance changes that would curtail its use of millions of dollars raised by an affiliated charity accused of mishandling tax-deductible donations.

For years, the N.R.A. made liberal use of the foundation’s coffers to prop up its own dwindling fortunes. The attorney general’s office said the practice illegally drew on charitable donations, which are not supposed to be used for political activity.

The N.R.A., in a statement, portrayed the settlement as a victory, saying it had “proved that all funds” taken from its foundation “were applied exclusively in furtherance of its charitable programs and that there was no misuse” of resources.

Charles Cotton, the N.R.A.’s president, called the lawsuit a “political attack” and said his group had been vindicated, while the group’s lead outside lawyer, William A. Brewer III, called it a “politically motivated action.”

But Brian L. Schwalb, the attorney general, characterized the settlement much differently.

“Caving to pressure from the N.R.A., the foundation diverted millions of dollars to the N.R.A. in grants and risky loans,” he said in his own statement, adding that the N.R.A. had used its foundation “as an unchecked piggy bank.”

The settlement is one more legal shoe to drop for the embattled gun rights group. In February, a Manhattan jury found Wayne LaPierre, the longtime leader of the N.R.A., liable for misspending $5.4 million of the organization’s money. Mr. LaPierre announced his resignation on the eve of the six-week corruption trial, which detailed his lavish personal expenses, including chartered flights for his relatives, excursions on luxury yachts and nearly $275,000 in Zegna suits.