May 12, 2021 Share
A federal judge dismissed the National Rifle Association’s bankruptcy case Tuesday, leaving the powerful gun-rights group to face a New York state lawsuit that accuses it of financial abuses and aims to put it out of business.
The judge was tasked with deciding whether the NRA should be allowed to incorporate in Texas instead of New York, where the state is suing in an effort to disband the group. Though headquartered in Virginia, the NRA was chartered as a nonprofit in New York in 1871 and is incorporated in the state.
Judge Harlin Hale said in a written order that he was dismissing the case because he found the bankruptcy was not filed in good faith.
AP
National Rifle Association Executive Vice President and CEO Wayne LaPierre speaks at Conservative Political Action Conference, CPAC 2020, in Oxon Hill, Md.
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NEW YORK Now that a judge has rejected the National Rifle Association’s bankruptcy bid, blocking its plan to reincorporate in Texas, the gun rights group is back to fighting New York regulators in a lawsuit that threatens to put it out of business.
Harlin Hale, a federal bankruptcy judge in Dallas, dismissed the NRA’s case on Tuesday. He ruled that the organization’s leadership sought Chapter 11 protection in bad faith without informing most of its 76-member board and did so to gain an “unfair advantage” in its fight with New York Attorney General Letitia James.
Updated May 11
Judge dismisses NRA bankruptcy case, dealing blow to gun group
The judge found the bankruptcy was not filed in good faith, but was instead filed to gain an unfair advantage in litigation or to avoid a regulatory scheme.
By Jake Bleiberg and MICHAEL R. SISAKAssociated Press
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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., on Feb. 29, 2020. AP Photo/Jose Luis Magana
DALLAS A federal judge dismissed the National Rifle Association’s bankruptcy case Tuesday, leaving the powerful gun-rights group to face a New York state lawsuit that accuses it of financial abuses and aims to put it out of business.