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NRA Has No Debt, NYAG Says In Final Plea To Toss Its Ch. 11
Law360 (May 3, 2021, 11:00 PM EDT) The New York Attorney General s Office made its closing argument Monday in its bid to have the National Rifle Association s Chapter 11 case tossed from a Texas bankruptcy court, saying the organization doesn t have any financial issues to justify its insolvency proceeding.
During a virtual hearing, Gerrit M. Pronske of Spencer Fane LLP said on behalf of the attorney general that the NRA s own statements made at the time of the filing of its Chapter 11 petition in January belie the true reason for the commencement of the bankruptcy case, which was to dump New York to escape an unfavorable regulatory environment..
Adam KlasfeldFeb 13th, 2021, 10:52 am
Formally asking a federal bankruptcy judge to reject the National Rifle Association’s “bad faith” petition, New York Attorney General
Letitia James described the gun group’s maneuver as a transparent bid to avoid accountability by an organization that claims to be in excellent financial health.
“This case presents an extraordinary and unique set of facts,” the attorney general’s counsel
James Sheehan wrote in a 41-page legal brief on Friday.
“In the face of the substantial allegations of illegal conduct in the state in which it is chartered, and a pending enforcement action there, the NRA has decided that it can cross state borders with its assets and open up in a different jurisdiction to evade law enforcement action,” it continues. “It has filed for bankruptcy using a newly formed subsidiary, while claiming to be financially solvent, to avoid regulation in the state where is chartered and subject to oversight.”