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With bankruptcy tossed, what’s next for the NRA?

NEW YORK (AP) — Now that a judge has rejected the National Rifle Association’s bankruptcy bid, blocking its plan to reincorporate in Texas, the gun rights group is back to fighting New York regulators in a lawsuit that threatens to put it out of business.

Harlin Hale, a federal bankruptcy judge in Dallas, dismissed the NRA’s case on Tuesday. He ruled that the organization’s leadership sought Chapter 11 protection in bad faith — without informing most of its 76-member board — and did so to gain an “unfair advantage” in its fight with New York Attorney General Letitia James.

What does that mean for the NRA and America’s long-running battle over guns? Here’s a look at where things go from here.


NEW YORK’S LAWSUIT GOES FORWARD

Hale’s ruling dismissing the NRA’s case ensures that James’ lawsuit seeking the organization’s dissolution can continue unimpeded. James, a Democrat, said Tuesday that discovery is ongoing and that the case is expected to go to trial next year.

“Today’s order reaffirms that the NRA does not get to dictate if and where it will answer for its actions,” James said. “The rot runs deep, which is why we will now refocus on and continue our case in New York court.”

James sued the NRA in August 2020, alleging top executives illegally diverted tens of millions of dollars for lavish personal trips, no-show contracts for associates and other questionable expenditures. NRA chief Wayne LaPierre and three other people who have worked for the organization were also named as defendants.

The NRA countersued James, alleging her actions were motivated by hostility toward its political advocacy, including her comments in 2018 that the NRA is a “terrorist organization.” That case is pending.