A federal judge tossed out the National Rifle Association’s bankruptcy case on Monday, imperiling the controversial gun advocacy organization’s attempt to re-organize and relocate to Texas amid a lawsuit from New York authorities seeking to dissolve the group for alleged financial crimes.
The group’s chapter 11 bankruptcy filing, launched in January, was an attempt to “gain an unfair litigation advantage” and “to avoid a state regulatory scheme,” US Bankruptcy Court judge Harlin Hale ruled on Monday in court in Dallas.
Last summer, New York attorney general Letitia James sued and sought to dissolve the NRA, accusing top executives like CEO Wayne LaPierre of corruption and financial mismanagement, which they have denied.
Prior to the lawsuit, the NRA was one of the country’s most influential conservative political groups, and has played a key role in blocking attempts at gun reform.
Tuesday’s ruling left the door open for the NRA to file for bankruptcy a second time, though judge Hale suggested if it did so, he would appoint a trustee to manage the organization, which is currently being overseen by the New York attorney general, further stripping Mr LaPierre and other NRA leaders of control.
The Independent is reaching out to the NRA for comment.