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National Rifle Association Fails in Attempt To Use Bankruptcy to Move to Texas

National Rifle Association Fails in Attempt To Use Bankruptcy to Move to Texas

National Rifle Association Fails in Attempt To Use Bankruptcy to Move to Texas

Court dismisses case, saying it was not filed in good faith and was an effort to avoid New York regulatory action
The National Rifle Association, sued last summer by the Attorney General of New York seeking to dissolve the organization and recover large sums from top officials for breach of fiduciary duty, has failed in an effort to use bankruptcy as a vehicle to move the corporation to Texas. A Bankruptcy Court in the Northern District of Texas has ruled that the case was not filed in good faith. The Court agreed with the Attorney General of New York that the NRA was attempting to use the bankruptcy proceeding to address a regulatory enforcement problem, not a financial one. Because it was not filed “for a purpose intended or sanctioned by the Bankruptcy Code,” the Court said, it was not filed in good...

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