THE National Rifle Association’s (NRA) bid to avoid a corruption lawsuit in New York has been slapped down by a federal judge meaning the notorious gun lobbying group faces a case that aims to put it out of business.
The organisation, whose powerful Washington influence is often seen as a major obstacle to gun control efforts in the United States, filed for bankruptcy in New York in the hope of reincorporating in Texas.
But Judge Harlin Hale said he did not believe the bankruptcy had been filed in good faith.
And he took aim at NRA CEO Wayne LaPierre, who acknowledged filing for bankruptcy without the knowledge of most of its board, saying: “Excluding so many people from the process of deciding to file for bankruptcy, including the vast majority of the board of directors, the chief financial officer, and the general counsel, is nothing less than shocking.”
Texas. U.S. District Judge
Harlin Hale ruled today the evidence shows the NRA was looking to avoid dealing with litigation in New York.
The group had been civilly sued by New York Attorney General
Letitia James claiming fraud and financial misconduct. Harlin noted NRA Executive Vice President Wayne LaPierre testified they would not have filed for bankruptcy if it wasn t for the suit. He believes the NRA is in good financial straits and would not be harmed by New York s suit.
The NRA could file a new bankruptcy case as Harlin noted his court would immediately take up some of the concerns raised by the group. The NRA filed for bankruptcy earlier this year.
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A federal judge has dismissed the National Rifle Association’s petition for bankruptcy, saying it was filed in “bad faith” in order to avoid litigation by the New York Attorney General Letitia James’ Office, which has sued to dissolve the NRA for allegedly misusing charitable funds.
Tuesday’s decision means the NRA will not have bankruptcy protections, which it has said are needed to protect against a “barrage of litigation” the organization is facing. It also means that the NRA cannot reorganize in the state of Texas without approval from the New York Attorney General’s Office, James said Tuesday. The NRA had requested to be reincorporated in Texas when it filed for bankruptcy, a move hailed by Texas politicians.