NRA bankruptcy: US judge dismisses case

A demonstration on the street in front of the National Rifle Association headquarters in Fairfax, Virginia, on Saturday, August 4, 2018

In a written statement, the judge said gun-rights group did not file for bankruptcy in good faith.

Last year, New York’s attorney general Letitia James filed a lawsuit accusing the NRA of financial mismanagement.

The NRA described the move as a “baseless, premeditated attack”.

It declared bankruptcy in January.

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Tuesday’s hearing focused on whether the group should be allowed to establish itself legally in Texas instead of New York, where it faces the lawsuit.

Although its headquarters are in Virginia, the NRA was chartered in New York in 1871 as a non-profit organization and it is incorporated in the state.

“The court believes the NRA’s purpose in filing bankruptcy is less like a traditional bankruptcy case in which a debtor is faced with financial difficulties or a judgment that it cannot satisfy and more like cases in which courts have found bankruptcy was filed to gain an unfair advantage in litigation or to avoid a regulatory scheme,” Judge Harlin Hale wrote.

“Excluding so many people from the process of deciding to file for bankruptcy, including the vast majority of the board of directors, the chief financial officer, and the general counsel, is nothing less than shocking,” the judge added.

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