Texas judge mulls whether to dismiss NRA's bankruptcy petition

May 04, 2021 at 00:51

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."
""We are as financially strong as we have been in years," the letter signed by LaPierre read.
Gregory Garman, an attorney for the NRA, argued Monday that the organization has $40 million in "unfunded future litigation."
James' office has asked Hale to dismiss the bankruptcy case with prejudice, so that the NRA cannot refile for bankruptcy in another venue.
LaPierre testified during the 12-day-long bankruptcy trial that he currently makes $1.3 million, after taking a 20% pay reduction "voluntarily" when the organization had to make cuts to other employees' salaries last year.
"I think my compensation has always been reasonable," LaPierre testified on Thursday.
I think the controls are stronger," LaPierre testified.
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.
Garman denied on Monday that the NRA's bankruptcy filing was a strategy to avoid the New York attorney general's litigation and pointed to a letter from New York Gov.
Precedent-setting caseIf 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.
"If this case is not dismissed, your honor, it's going to throw a monkey wrench into the gears of federalism.
It will throw gasoline on the ideological fires that are already raging out of control in this country," Mason said.