TriggerFinger


NRA's bankruptcy ploy fails to derail New York lawsuit


Free BeaconThe National Rifle Association suffered a setback on Thursday as a state supreme court justice ruled against the organization's motions to dismiss, delay, or transfer a lawsuit seeking the group's dissolution.

The lawsuit, brought by New York attorney general Letitia James, aims to dissolve the group—a nonprofit organization incorporated under New York law—because it allegedly defrauded donors.

The ruling comes six days after the Second Amendment organization filed for bankruptcy and announced its plan to reincorporate in Texas. New York state supreme court justice Joel M. Cohen ruled that while the NRA filed for bankruptcy, it wasn't "the exclusive province of the bankruptcy court" to decide the case. The bankruptcy court could still weigh in on the case. In many instances, bankruptcy proceedings put lawsuits on hold.

I was a bit skeptical of this move from the beginning. If you could evade state regulatory enforcement just by declaring bankruptcy and relocating to a different state, it would happen all the time. It doesn't; therefore, it's not as likely to work as the lawyers claimed...

Our best case outcome here is for a new, revitalized gun rights organization to emerge from a friendlier jurisdiction. It might be the NRA (hopefully with new management whose focus will be on gun rights rather than selling their mailing list to advertisers); it might be some other organization moving to fill the void. But the current, entrenched leadership at the organization has demonstrated an inability to meet the challenges and responsibilities of their position.

This entry was published Mon Jan 25 21:29:18 CST 2021 by TriggerFinger and last updated 2021-01-25 21:29:18.0. [Tweet]

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