The National Rifle Association filed a lawsuit against New York Governor Andrew Cuomo and the New York State Department of Financial Services on May 11, alleging that the state violated the group's constitutional rights in encouraging New York-licensed financial institutions to review their ties to the gun lobby.
The lawsuit, filed with the U.S. District Court for the Northern District of New York, alleges that New York violated the organization's constitutional rights to free speech, due process, political advocacy and equal protection.
On April 19, Cuomo and the New York State Department of Financial Services, or NY DFS, issued a press release asking businesses to "consider reputational risk and promote corporate responsibility" in reviewing their relationships with the NRA.
"DFS urges all insurance companies and banks doing business in New York to join the companies that have already discontinued their arrangements with the NRA, and to take prompt actions to manage these risks and promote public health and safety," NY DFS Superintendent Maria Vullo said.
On May 2, the NY DFS announced a $7 million fine as part of a consent order with Lockton, an excess line insurance broker that underwrote NRA-branded "Carry Guard" insurance programs offering liability coverage for firearms use. The NY DFS argued that the program enables "acts of intentional wrongdoing" by improperly covering costs associated with handling a criminal proceeding related to a shooting, such as bail money, premiums on bonds and legal fees.
The consent order bans Lockton from offering Carry Guard insurance in New York.
The NRA argues that New York used legal sanctions to deprive gun owners "of their First Amendment right to speak freely about gun-related issues and defend the Second Amendment." The NRA also argued that Cuomo and Vullo engaged in a conspiracy to "induce a boycott of the NRA," which they see as causing financial damage to the organization.
In a statement, the NY DFS said it continues to find the Carry Guard program illegal and "will not stand down from its mandate to enforce New York law."
After the mass shooting at a Florida high school that left 17 dead, a number of companies faced pressure to cut ties with the firearms industry, including a number of banks. Days after the shooting, First National Bank of Omaha said it would drop its NRA-branded credit card.
In March, Citigroup Inc. said it would review its relationships with firearms retailers and manufacturers. The next month, Bank of America Corp. pledged to stop lending to companies that manufacture military-style guns for non-military use. JPMorgan Chase & Co. says it has reduced its connections to gun manufacturers in recent years.
The banks have received some pushback from Capitol Hill, where Sen. John Kennedy, R-La., has criticized the likes of Citigroup for "imposing [their] political agenda." Kennedy has since pushed lawmakers in Louisiana to block the state from doing business with banks with anti-gun policies.
