Advocates for gun violence prevention rejoiced Tuesday when a federal judge dismissed the National Rifle Association’s bankruptcy case, ruling that the powerful gun lobby declared bankruptcy in an attempt to avoid facing a New York state lawsuit that accuses the organization of fraud and seeks to disband it.
“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,” Judge Harlin Hale wrote in his decision, as the Washington Post reported.
In response to the ruling, New York Attorney General Letita James said in a statement that “the NRA does not get to dictate if and where it will answer for its actions.” James added that “we will now refocus on and continue our case in New York court.”
Hale’s decision elicited praise from groups working to end gun violence nationwide.
“Today’s decision is a historic win for the rule of law and a sure sign of defeat for the NRA and its corrupt leadership,” Kris Brown, president of Brady, said in a statement. “The NRA’s bankruptcy was deemed to be bad faith, much like every promise and statement the organization has made for decades. The NRA cannot escape justice. The court has ruled against the organization after weeks of damning testimony.”
Last August, James filed a lawsuit seeking to dissolve the NRA “following allegations that executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts, and other questionable expenditures,” the Associated Press reported.
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