NRA can't even afford to defend themselves anymore. They filed bankruptcy didn't they?
This was informative for me.
The N.R.A. Wants to ‘Dump’ Its Regulators via Bankruptcy. Will It Succeed?
"The organization’s audacious bankruptcy filing, in which it is not actually claiming to be insolvent, seeks to use the bankruptcy process to circumvent regulators in New York, where the N.R.A. has been chartered for a century and a half. The state’s attorney general, Letitia James, sued the association
in August, seeking to shutter it amid claims of mismanagement and corruption. The N.R.A. said in its legal filings that New York officials had long sought to “weaponize the state government’s regulatory powers against it” and that the association now wanted to reincorporate in Texas."
Legal experts said the bankruptcy filing was likely to either be rejected or lead to a leadership purge, and was a sign that the organization and Mr. LaPierre were cornered by regulators.
“I see it as a Hail Mary for them,” said Adam J. Levitin, a professor specializing in bankruptcy at Georgetown University. “They may know they’re dead in the water if they don’t get out of the A.G.’s grasp.”
The N.R.A. is not financially under water; this week, it reported having assets roughly $50 million greater than its debts. Although there is some precedent for organizations that are not bankrupt to declare bankruptcy —
Texaco’s 1987 case led the way, when the company sought to evade a more than $10.5 billion Texas court judgment against it — judges screen cases to make sure the company is acting in good faith, as required by the Bankruptcy Code. A judge who finds bad-faith behavior can throw out the case."
“There’s only one rule for a good-faith bankruptcy filing,” said David A. Skeel Jr., a professor of corporate and bankruptcy law at the University of Pennsylvania Law School. “You can’t say: ‘I don’t need bankruptcy. I’m really only here because I’ve got this other problem.’”
"The N.R.A. now confronts considerable litigation — against hostile government actors, as well as former vendors and executives” who “the N.R.A. determined had abused its trust,” the association said in the bankruptcy filing."
detroit.cbslocal.com
