Judge Rejects NRA's Bid To Throw Out Or Transfer Lawsuit That Could Shut It Down

A New York judge has rejected a National Rifle Association bid to dismiss, pause or transfer to another court a lawsuit by the state of New York that could shut down the organization.

The lawsuit, filed by the New York attorney general in August, seeks to dissolve the nonprofit and alleges that executives diverted millions of dollars of NRA funds to luxury vacations, private jets and more. The lawsuit, backed by a 18-month investigation, alleges the organization is "fraught with fraud and abuse."

The ruling by Justice Joel Cohen of Manhattan Supreme Court comes six days after the gun-rights group said in its filing for Chapter 11 bankruptcy that it wants to relocate to Texas.

Typically bankruptcy filings halt existing litigation. But New York Attorney General Letitia James pushed for an exemption, saying she was enforcing her "police and regulatory power."

The NRA announced it wants out of New York due to its "corrupt political and regulatory environment." The organization said it would reincorporate in Texas and hoped the lawsuit would either be thrown out or handled in another court.