A derivative lawsuit against the Libertarian National Committee Chair and Committee is advancing. The purpose of a derivative lawsuit is to cause the defendants to perform their fiduciary duties and satisfy their bylaws requirements. In support of the suit, Chair Emeritus Nick Sarwark had previously published a call to action “Stop the Destruction of the Libertarian Party” found below.
Sarwark now reports “As of today, a law firm has been retained, a lead plaintiff identified, and sufficient affirmative responses to signing on as a co-plaintiff that we should easily meet the standing requirements for a nonprofit derivative suit.”
Third Party Watch can authoritatively report that the lead plaintiff is not Sarwark.
We invite comments from members of the National Committee.
Stop the Destruction of the Libertarian Party
Dear Friends,
The Libertarian Party is in pretty bad shape right now.
Angela McArdle and the rest of the Libertarian National Committee have been mismanaging party assets in breach of their fiduciary duties and requirements of the bylaws for their positions.
As a nonprofit membership contribution organized under D.C. law, the members of the Libertarian Party have rights to have the organization managed with appropriate care, loyalty, honesty, and basic standards of nonprofit management.
This right is not because of the government, it is because we who have joined the Libertarian Party agreed to rules and bylaws to govern our organization. When those rules are violated and the violators won’t stop, the courts are where the problem needs to be fixed.
Members of an organization are owed leaders who meet the basic fiduciary duties of a board member and/or officer and abide by the rules and bylaws voluntarily adopted by the members at convention. In short, members are owed competent leadership.
Competent leadership does not engage in corrupt self-dealing.
Competent leadership does not divert resources away from the LNC to competing organizations and political parties.
Competent leadership does not cut staffing levels in core areas of operations without any plan to engage in an election year.
Competent leadership does not drive the finances into insolvency by offending donors and members without any strategy to replace those donors and members.
If you are a sustaining member of the Libertarian Party and would like to join a derivative lawsuit to enforce our rights as members to have competent leadership, enter your contact information in the form below and I will get it to the lead plaintiff.
Together, we will rebuild what has been broken.
Yours in liberty,
Nicholas Sarwark
Chair Emeritus, Libertarian National Committee (2014-2020)
“If you are a sustaining member of the Libertarian Party …”
Does this invitation cover people who are lifetime members but who have refused to donate for a few years? Or does it require currently-paying members?
What are the (potential) obligations of people who join the derivative lawsuit?
Lifetime members have standing regardless of whether they have donated recently.
The only obligation of joining the derivative lawsuit is affirming that you are a member with standing and that you are willing to sign on to the complaint.
Life members are sustaining members
Oh good. Something expensive.