Prosecutors in New York have asked a court not to allow the National Rifle Association's recent bankruptcy filing to derail a state fraud case against it. State Attorney General Letitia James is seeking to dissolve the organization amid claims that it misappropriated millions of dollars to fund lavish lifestyles and various perks for its executives, board members, and others close to it. Lawyers for her office argued this week that the NRA's bankruptcy filing and planned move to Texas were efforts to circumvent the New York case, but NRA lawyers said the group was trying to escape not the litigation but rather the “corrupt political and regulatory environment in New York.” An NRA lawyer said the group sought bankruptcy protection, despite its claims that it is in sound fiscal shape, from various overlapping state lawsuits. Normally, bankruptcy proceedings would halt other litigation, but the New York attorney general's office says its lawsuit is exempt because it is a regulatory matter. (Associated Press)
Bankruptcy (like for Catholic Schools) is not in my opinion an acceptable way for an organization to fulfill its obligations. Harm was done - bankruptcy is not a get-out-of jail card for the survivals. Bankruptcy is another failure by the board.