U.S. judge tosses NRA bankruptcy bid, letting New York seek dissolution
A federal judge in Dallas ruled on Tuesday that the National Rifle Association cannot use bankruptcy to reorganize in gun-friendly Texas, dealing a serious blow to the influential gun rights group’s effort to avoid a lawsuit in New York seeking its dissolution.
U.S. Bankruptcy Judge Harlin Hale said the NRA did not file for Chapter 11 protection in good faith, but rather did so to avoid oversight by New York Attorney General Letitia James and gain an “unfair litigation advantage” over her.
In dismissing the bankruptcy bid, Hale singled out Wayne LaPierre, the NRA’s longtime chief executive, for criticism.
James sued the NRA last August, accusing it of corruption and misspending. Her lawsuit said the NRA diverted millions of dollars to fund luxuries for officials including LaPierre and awarded lucrative contracts to associates and relatives of senior officials.
Closely aligned with Republicans including former President Donald Trump, the NRA has long been instrumental in thwarting Democratic-backed gun control measures in the U.S. Congress. [Continue reading…]