US judge rejects NRA bankruptcy in New York victory – fr

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US judge rejects NRA bankruptcy in New York victory – fr


The National Rifle Association cannot use bankruptcy to reorganize in a gun-friendly Texas, a Dallas federal judge said Tuesday, attributing a defeat to the influential gun rights group facing the to an effort to dissolve it in New York State.

US bankruptcy judge Harlin Hale’s ruling, following a lawsuit over the legitimacy of the NRA’s bankruptcy filing in January, means the group will remain incorporated in New York.

Letitia James, the New York attorney general, filed a lawsuit last August calling for the dissolution of the NRA, which she accused of corruption and abusive spending.

“The question the court faces is whether the existential threat facing the NRA is the type of threat that the Bankruptcy Code is meant to protect against,” Hale wrote. “The court thinks that’s not the case. “

Hale’s firing is without prejudice, which means the NRA may attempt to file for bankruptcy again, but the judge said problems identified in his operations could lead to the appointment of a trustee to oversee his affairs.

The NRA did not immediately respond to a request for comment.

Closely aligned with Republican American politicians, including former President Donald Trump, the NRA has been instrumental for years in thwarting Democrat-backed gun control proposals in the United States Congress.

James, a Democrat, accused the NRA of embezzling millions of dollars to fund luxury goods for public officials, including longtime CEO Wayne LaPierre. She also accused him of awarding lucrative contracts to close associates and family members of senior officials.

LaPierre and the NRA have denied the wrongdoing.

The NRA filed for Chapter 11 protection in January in a bid to reincorporate in Texas and escape what it called a corrupt political and regulatory environment in New York City.

James and former NRA advertising agency Ackerman McQueen have said the bankruptcy was filed in bad faith and to escape New York City scrutiny, with an attorney for James in closing arguments calling the case the bankruptcy. bankruptcy of “circus show”.

President Joe Biden’s administration opposed the NRA during the trial. The Department of Justice’s bankruptcy watchdog, the US trustee, urged Hale to dismiss the bankruptcy.

The NRA called the New York trial politically motivated. LaPierre testified that he requested Chapter 11 on behalf of the NRA because he feared James would try to put him in receivership.

The NRA has also faced internal turmoil in recent years, including an unsuccessful effort to oust LaPierre over allegations of mismanagement.

The NRA was founded in 1871 in New York City. Texas is a Republican-ruled state whose leaders support the NRA’s stance against gun control.

A series of mass shootings in the United States this year prompted Biden in April to label gun violence “national embarrassment.” The Democratic president has taken executive action on gun control and called for broader measures that would require passage by Congress, including a ban on military-style assault weapons and large ammunition stores. capacity.

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