Thread by @KlasfeldReports

BREAKING:

"Judge Dismisses the NRA’s Bankruptcy Petition, Calls Wayne LaPierre’s Conduct ‘Nothing Less Than Shocking’"

Developing story, with key passage here, at @LawCrimeNews.

Ruling inside.
lawandcrime.com/high-profile/j…

Some reactions to the ruling:

The NRA filed for bankruptcy in Texas in response to @NewYorkStateAG Tish James's lawsuit in New York seeking its dissolution for violations of state charity law.

Right out of the gate, Judge Hale says that's not what bankruptcy is for.

To file for bankruptcy, the NRA established a Texas entity Sea Girt LLC, which regulators call LaPierre's "wholly owned shell company."

The judge describes the cash-flush group's "somewhat unusual" path to bankruptcy court here.

The judge found LaPierre's own testimony helpful in justifying his ruling to dismiss the bankruptcy petition, because the NRA chief pretty much said it's about avoiding the NYAG.

Essentially, Judge Hale found that the NRA can't declare bankruptcy to get a leg up on that lawsuit.

"Courts have consistently held that a bankruptcy case filed for the purpose of obtaining an unfair litigation advantage is not filed in good faith and should be dismissed."

"In an odd twist for a bankruptcy case, the NRA is financially healthy, and undisputed creditors are likely to be paid sooner in the ordinary course outside of bankruptcy than they would if they must wait for confirmation of a plan of reorganization."

Judge Hale rattles off the aspects of the case that "still trouble the Court" in the conclusion here.

The ruling appears to steer mostly clear of the more sensational aspects of the case, i.e. LaPierre's yacht trips and nearly $300K Zegna suits.

Hale does, however, note "cringeworthy facts" that turned up at trial, such as one exec asserting his Fifth Amendment right against self-incrimination through broad swaths of his deposition.

He voices "concern" over NRA's apparent procedural violations over $100K contracts.

Judge Hale dismissed the petition without prejudice, meaning the NRA could try it again.

But that invitation was not a warm one.

The NRA did not immediately reply to a press inquiry about their intent.

I folded these observations into an update of the story at the top of the thread.

Have some time for an hourlong audio deep-dive, with audio highlights from LaPierre's testimony?

Listen to an old episode of my podcast "Objections" here and subscribe. art19.com/shows/objectio…

“This trial underscored that the NRA’s fraud and abuse continued long after we filed our lawsuit... The rot runs deep."

— The NYAG's statement is below.