A federal judge in Dallas deems the nonprofit’s Chapter 11 filing as an attempt at getting around the New York attorney general’s lawsuit to dissolve the NRA.
FILE – This Feb. 29, 2020 file photo, National Rifle Association Executive Vice President and CEO Wayne LaPierre speaks at Conservative Political Action Conference, CPAC 2020, at the National Harbor, in Oxon Hill, Md. New York’s attorney general is suing the National Rifle Association, seeking to put the powerful gun advocacy organization out of business over allegations that high-ranking executives diverted millions of dollars for personal benefit. (AP Photo/Jose Luis Magana, File)
DALLAS (CN) A federal judge dismissed the National Rifle Association’s bankruptcy case Tuesday for bad faith, ending the gun rights group’s plans to reorganize in Texas to escape New York regulators’ lawsuit seeking to dissolve it for alleged mismanagement.
AP Photo/Seth Perlman, File
The National Rifle Association has been around for almost 150 years but it looks like it’s now facing a complete and total shutdown with the bankruptcy it filed having been dismissed.
According to Stephen Gutowski’s “The Reload,” the NRA’s bankruptcy strategy has failed as a federal judge ruled that the group’s use of bankruptcy was less about financials and more about attempting to avoid government oversight:
Federal Judge Harlin Hale ruled the gun group’s attempt to relocate to Texas in response to litigation by New York Attorney General Letitia James (D.) targeting the group could not go through. Judge Hale agreed with James in her argument the NRA, whose leaders repeatedly publicly touted the financial strength of the organization during the case, was not trying to address legitimate financial concerns. Instead, the judge concluded, the group was inappropriately trying to use the bankruptcy court to avoid government oversight.
Judge dismisses NRA bankruptcy case that would have allowed gun rights group to reorganize in Texas
James Barragán, The Texas Tribune
May 11, 2021
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A federal judge dismissed on Tuesday a bankruptcy case by the National Rifle Association that would have allowed it to reorganize as a nonprofit in gun-friendly Texas, dealing a blow to the gun rights group that is facing a lawsuit in New York that could put it out of business.
The NRA filed for Chapter 11 bankruptcy in January and announced it planned to move to Texas. But legal experts said the announcement was more a legal maneuver to avoid an aggressive lawsuit by New York Attorney General Letitia James than a physical relocation. In August, James had accused NRA leaders of fraudulently using the group s funds for decades and aimed to put the group out of business.
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