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 a lawsuit that threatens to put it out of business.
Harlin Hale, a federal bankruptcy judge in Dallas, dismissed the NRA's case Tuesday. He ruled 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 regulators.
What does that mean for the NRA and America's long-running battle over guns? Here's a look at where things go from here.
NEW YORK'S LAWSUIT
Hale’s ruling ensures New York Attorney General Letitia James’ lawsuit seeking the organization’s dissolution can continue. James, a Democrat, said Tuesday that discovery is ongoing. The case is expected to go to trial next year.
“The rot runs deep, which is why we will now refocus on and continue our case in New York court," James said.
James sued the NRA in August 2020, alleging executives diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures. NRA chief Wayne LaPierre and three others who have worked for the organization were also sued.
The NRA countersued, alleging James — who once called the NRA a “terrorist organization” — was motivated by political hostility. That case is pending.