The gun-rights group is “not in any way attempting to escape regulatory supervision,” Patrick Neligan, the NRA’s bankruptcy attorney, said in its first Chapter 11 hearing Wednesday. “It’s simply false” that the NRA is running away from the litigation in New York, he said.
When the NRA
The New York Attorney General’s office is “very concerned” about the statements, James Sheehan, chief of the state’s charities bureau, said in the hearing, which was held by videoconference. Attorney General
Rather than escape the New York litigation, the bankruptcy filing is a way to “centralize” a multitude of current and potential lawsuits the NRA is facing, Neligan said. He cited a wrongful death lawsuit, insurance litigation and actions from various state agencies.
“It’s become increasingly evident that the NRA, like many other companies that have previously filed for Chapter 11, needed the breathing spell that Chapter 11 provides,” Neligan said.
U.S. Bankruptcy Judge
“There are a lot of strong feelings in this case,” Hale said during the hearing. “I would ask that everyone sort of ratchet that part of the case down some, now that we’re in bankruptcy court. Bankruptcy in some ways is a miraculous place to be in that the debtor has an opportunity to reorganize its affairs, and on the other hand, for the benefit of creditors, the debtor has to be 100% transparent.”
(Michael R. Bloomberg, founder of Bloomberg News parent Bloomberg LP, is a donor to candidates and groups that support gun control, including Everytown for Gun Safety.)
The case is National Rifle Association of America,
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