A bankruptcy case surrounding the National Rifle Association (NRA) has been dismissed by a US judge, leaving the strong organisation facing a lawsuit that may result in its dissolution.
The judge said in a written statement that the gun-rights organisation did not apply for bankruptcy in good conscience.
The NRA called the action a “baseless, premeditated attack”
In January, it filed bankruptcy.
The hearing on Tuesday based on whether the company should be able to legally organise itself in Texas rather than New York, where it is being sued.
Although its headquarters are in Virginia, the NRA was chartered in New York in 1871 as a non-profit organisation and it is incorporated in the state.
“The court believes the NRA’s purpose in filing bankruptcy is less like a traditional bankruptcy case in which a debtor is faced with financial difficulties or a judgment that it cannot satisfy and more like cases in which courts have found bankruptcy was filed to gain an unfair advantage in litigation or to avoid a regulatory scheme,” Judge Harlin Hale wrote.
“Excluding so many people from the process of deciding to file for bankruptcy, including the vast majority of the board of directors, the chief financial officer, and the general counsel, is nothing less than shocking,” the judge added.
Tweeting after the ruling was issued, Ms James wrote: “The NRA does not get to dictate if and where it will answer for its actions, and our case will continue in New York court. No-one is above the law.”
Phillip Journey, an NRA board member and Kansas judge, said he was “disappointed” with the judge’s ruling.