Texas judge mulls whether to dismiss NRA's bankruptcy petition
May 4, 2021. Summarized by summa-bot.
Compression ratio: 20.7%. 1 min read.
For nearly a month, attorneys have argued over whether the National Rifle Association's petition to file for bankruptcy in Texas should be dismissed, and whether its business dealings should be overseen by a court-appointed trustee or an examiner.
New York Attorney General Letitia James' office asked US Bankruptcy Judge Harlin Hale to dismiss the bankruptcy petition, saying it had been filed as a way to "remove the NRA from regulatory oversight. "
Texas attorney Gerrit Pronske, who is representing James' office in court, argued during closing arguments on Monday that the bankruptcy filing should be dismissed for being filed in "bad faith," pointing to a public letter to NRA members on the day the organization filed for bankruptcy in which LaPierre wrote: "The NRA is not 'bankrupt' or 'going out of business. ' "
James' office argued that if Hale does not dismiss the NRA's bankruptcy petition, he should appoint a trustee to monitor the financial operations of the organization, saying that "there is evidence of fraud, dishonesty, incompetence and mismanagement" by current leadership.
If the NRA's bankruptcy petition is approved it would set a "dangerous" precedent by not allowing the New York attorney general's case against the organization to go forward, said Brian Mason, an attorney arguing on behalf of the NRA's largest creditor, advertising firm Ackerman McQueen.