A Federal Judge in Texas has now dismissed the Chapter 11 bankruptcy case filed by the NRA, claiming that it was filed in ‘bad faith.’
As Business Insider reports:
A Texas judge is throwing out the National Rifle Association’s bankruptcy filing, saying that the case was filed in “bad faith” in an effort to avoid litigation in New York, according to Law 360.
Judge Harlin Hale’s decision to throw out the case came after New York Attorney General Letitia James and others questioned the legitimacy of the bankruptcy filing.
The NRA filed for Chapter 11 bankruptcy protection on January 15 after James filed a lawsuit to dissolve the gun rights organization, alleging it abused its legal status as a nonprofit. In its August filing, New York prosecutors accused the group of corruption and said its longtime CEO Wayne LaPierre “instituted a culture of self-dealing, mismanagement, and negligent oversight.”
While reports of financial troubles have dogged the NRA for years, its bankruptcy filings showed it was financially solvent and had assets worth roughly $50 million more than its debts. The organization tried to restructure in Texas, claiming New York had a corrupt regulatory environment.
While the dismissal is bad news for the NRA it’s good news for the ultra-liberal prosecutors of New York States who celebrated the news on Twitter:
The @NRA does not get to dictate if and where it will answer for its actions, and our case will continue in New York court.
No one is above the law.
— NY AG James (@NewYorkStateAG) May 11, 2021