The National Rifle Association said it took refuge in bankruptcy court due to partisan legal efforts in New York to put it out of business, but that it isn’t seeking to block that litigation from progressing, WSJ Pro Bankruptcy reported. In court papers filed early Wednesday, the NRA accused New York Gov. Andrew Cuomo and New York Attorney General Letitia James of targeting the organization with a lawsuit designed to weaken it in ahead of the 2020 elections. The court filing came in advance of the NRA’s debut appearance in the U.S. Bankruptcy Court in Dallas, where the nonprofit sought chapter 11 protection last week as part of a planned move to Texas. At the hearing, lawyers for the NRA said the organization won’t use the bankruptcy filing to try to put a halt to the New York lawsuit, which was filed in August. “As we have made clear, we’re not afraid of the litigation in New York State and we’re prepared to go forward on that,” NRA bankruptcy lawyer Patrick Neligan said during the videoconference hearing. The organization hasn’t sought to invoke the automatic stay, a bankruptcy shield that halts some hostile legal actions against troubled companies. More litigation targeting the NRA could be on the way, Mr. Neligan said. The New York attorney general’s office remains concerned about statements from the organization, said James Sheehan, chief of the charities bureau in that office. The NRA continues to defend against the lawsuit, and is due to appear in state court in Manhattan on Thursday to argue for the attorney general’s allegations to be heard in Albany, N.Y. instead.
