"The NRA clearly and undisputedly had no financial reason for filing for bankruptcy," Pronske argued during the final day of the weekslong trial. "It's a major indicia of bad faith and an abuse of this court that the NRA has no debt problems."
Public statements from the debtor bolster the attorney general's position, he said, pointing to the NRA's own press release announcing the bankruptcy, which says the organization is in the strongest financial position it has been in years.
Pronske said the case was filed in bad faith as a way to gain an advantage in litigation brought by the New York attorney general in August 2020 that is seeking to dissolve the organization for alleged violations of the state's not-for-profit laws. He also said the NRA engaged in impermissible forum shopping by incorporating a nonoperating entity in Texas in the weeks before the bankruptcy filing for the sole purpose of establishing a venue nexus to file there, with the stated goal of reincorporating the NRA in Texas after its departure from New York.