ACORN Board: No Lawsuit Over Embezzlement Claim

NEW ORLEANS (AP) – A national activist group’s board of directors has voted to withdraw a lawsuit over allegations that the founder’s brother embezzled nearly $1 million.

The embezzlement case has set off a power struggle inside the Association of Community Organizations for Reform Now at a time when its voter registration practices have come under scrutiny.

Two of 51 board members sued for access to ACORN’s financial records. The lawsuit accuses ACORN founder and former chief organizer Wade Rathke of either concealing or failing to properly report that his brother Dale embezzled money from the group and affiliated charitable organizations several years ago.

An ACORN spokesman said Monday the full board voted to withdraw the members’ lawsuit during a weekend meeting in New Orleans.

(Copyright 2008 by The Associated Press. All Rights Reserved.)