The gun group is facing a New York state lawsuit that alleges "fraud and abuse."

By Lucien Bruggeman
February 22, 2021

...Judge Harlin Hale of the U.S. Bankruptcy Court for the Northern District of Texas is now weighing motions filed by James' office and others to dismiss the NRA's bankruptcy case claim. Legal experts interviewed by ABC News posit that the chances of a dismissal are strong, particularly given the NRA's insistence that the organization remains financially viable -- a position that undermines the traditional purpose of a Chapter 11 claim.

Adam Levitin, a bankruptcy professor at the Georgetown University Law Center, said the NRA's plan to seek bankruptcy protection amounts to little more than a "Hail Mary pass."

"If the alternative is that the New York attorney general shuts down the NRA, what do they have to lose with this strategy?" Levitin said. "They are out of ammo."

But another scenario could pose an entirely different threat to the beleaguered gun group: If Hale allows the NRA's bankruptcy claim to march forward, he may then choose to appoint a trustee to investigate allegations of fraud -- or even assume control of the organization...