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In re National Rifle Association of America

628 Bankr. 262 (2021)

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In re National Rifle Association of America

United States Bankruptcy Court for the Northern District of Texas
628 Bankr. 262 (2021)

SC

Facts

The National Rifle Association of America (NRA) (plaintiff) was incorporated in the State of New York. The New York attorney general (NYAG) sued the NRA, alleging that the organization wasted corporate assets and generally conducted business illegally in the State of New York. The NYAG sought dissolution of the organization. Subsequently, the NRA filed a petition for bankruptcy. The NRA claimed at various times that its reasons for filing for bankruptcy protection included reorganization and reincorporation in Texas, reducing operating costs, and addressing certain open contracts, among other things. NRA testimony was conflicting as to the true purpose of the filing. A motion was filed to dismiss the bankruptcy petition.

Rule of Law

Issue

Holding and Reasoning (Hale, J.)

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