In the next week, a U.S. bankruptcy judge in North Texas is expected to issue a ruling with major implications for the National Rifle Association.
On Jan. 15, the NRA filed for Chapter 11 reorganization in Dallas, prompting a legal firestorm in New York, where the group was founded 150 years ago. New York Attorney General Letitia James has accused the NRA, including Executive Vice President Wayne LaPierre, of corruption and mismanagement. As reported by Bloomberg, a filing by James' office called the Dallas bankruptcy filing a "poster child of bankruptcy filed in bad faith" that the court should reject to "prevent bankruptcy from becoming a haven for wrongdoers,"
In the filing earlier this year, the NRA said the restructuring would help it escape "a corrupt political and regulatory environment in New York."
New York officials are asking U.S. Bankruptcy Judge Harlin D. Hale to dismiss the NRA bankruptcy filing or approve a trustee to look into the criminal allegations. Hale called the case one of the most important of his career. He is expected to issue a ruling early next week. Bloomberg Senior Report Neil Weinberg is covering the case. He talked with KRLD's Chris Sommer.