The National Rifle Association’s attempt to flee a civil lawsuit by the New York attorney general was foiled Tuesday when a federal judge denied its efforts to file for bankruptcy protection in Texas.
Judge Harlin Hale said the gun group’s petition was “not filed in good faith.”
“The Court finds, based on the totality of the circumstances, that the NRA’s bankruptcy petition was not filed in good faith but instead was filed as an effort to gain an unfair litigation advantage in the NYAG Enforcement Action and as an effort to avoid a regulatory scheme,” Hale wrote in his ruling.
The NRA first filed for bankruptcy in Texas in January in what the group called a “new strategic plan.”
“BREAKING: NRA Dumps New York To Reincorporate In Texas” the group boasted on Twitter at the time.
The group decided to “dump” New York following New York Attorney General Letitia James’ decision last August to seek dissolution of the NRA after an 18-month investigation found it had lost more than $64 million over three years.
Part of those losses involved top executives funneling contracts to friends and family members and using charitable funds for their own personal gain, according to the investigation.
“The NRA’s claimed financial status has finally met its moral status: bankrupt,” James said in a statement in January after the NRA announced its filing. “While we review this filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”
Hale’s dismissal of the NRA’s bankruptcy filing is without prejudice, meaning the NRA can try to file for bankruptcy again, Reuters reported.
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