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New York Judge Ruling Allows Dissolution Case Against NRA To Move Forward

New York Attorney General Letitia James
Richard Drew
New York Attorney General Letitia James

A judge in New York has denied the National Rifle Association’s request to throw out a state lawsuit that seeks to put the gun rights group out of business.

The ruling allows New York Attorney General Letitia James to move forward in state court, instead of the case being moved to federal court or dismissed on technical grounds.

The lawsuit seeks the dissolution of the NRA under state nonprofit law. James said that top executives illegally diverted millions of dollars for personal expenses and no-show contracts.

The NRA has been incorporated in New York since 1871. And early this month, the gun advocacy group filed for bankruptcy protection in Texas in a bid to reincorporate in that state.

A bankruptcy case typically halts all pending litigation. However, James said her lawsuit involves a state's regulatory powers and cannot be stopped by bankruptcy.

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