Fallout Over HB 2 Widens As More Businesses, Politicians Get Involved

North Carolina's Attorney General says he won't defend in court the state's new law that blocks local governments from creating their own LGBT protections. Democrat Roy Cooper made the announcement Tuesday, a day after gay rights advocates sued the state in an effort to overturn it.

In a press conference recorded by WRAL, Cooper says no discrimination is tolerable. He adds that the law is unconstitutional and it's also bad for business.

“Not only is this law a national embarrassment, it will set north Carolina's economy back if we don't repeal it,” he says.

Republican Gov. Pat McCrory released a video statement on Tuesday afternoon in response to Cooper's decision.

"The legislation was passed to protect men, women and children when they use a public restroom, shower or locker room. That is an expectation of privacy that must be honored and respected. Instead, North Carolina has been part of a nation-wide smear campaign,” McCrory says.

Republican Senate Leader Phil Berger also criticized Cooper's announcement and says he should resign if he won't defend the measure. He adds Cooper, who is challenging McCrory for governor this fall, is pandering to left-wing backers for his campaign.

The political back and forth comes as corporate heads and state leaders across the country are lashing out against the law.

A letter released Tuesday by gay rights advocates is signed by corporate chieftains including IBM CEO Virginia Rometty, Apple head Tim Cook and Mark Zuckerberg of Facebook, asking Gov. Pat McCrory and legislative leaders to repeal the law.

Meanwhile, Atlanta city leaders are asking the NBA to move the 2017 All-Star Game from Charlotte to Atlanta.

Earlier in the week, the High Point Market Authority said that dozens of buyers have said their employees won't attend to shop the new offerings of manufacturers and wholesalers.

And on Tuesday, Washington joined the growing list of places boycotting travel to North Carolina, along with New York and Vermont. The mayors of San Francisco and Seattle have also barred city employees from traveling to the state.

The Associated Press contributed to this report.