A federal bankruptcy judge dismissed the NRA's bankruptcy chapter 11 filing on Tuesday, halting the gun rights organization's attempt to move from NY to Texas.
Judge Harlin Hale's decision comes nearly 10 months after New York Attorney General Letitia James filed a lawsuit against the NRA, accusing four of the organization's top executives of mismanaging funds and violating state and federal laws.
The ruling leaves the NRA to face a NY state lawsuit that accuses it of financial abuses and aims to put it out of business.
The NRA did not immediately respond to a request for comment.
Closely aligned with Republicans including former President Donald Trump, the NRA has always been instrumental in thwarting Democratic-backed gun control measures in the U.S. Congress. She also accused it of awarding lucrative contracts to close associates and family members of senior officials.
He singled out LaPierre for criticism, including the "surreptitious manner" he used to obtain sole authority to put the NRA into bankruptcy in January.
LaPierre and the NRA have denied wrongdoing.
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Tweeting after the ruling was issued, Ms James wrote: "The NRA does not get to dictate if and where it will answer for its actions, and our case will continue in NY court".
"The NRA was forced to hang its dirty laundry out for the world to see", said John Feinblatt, president of Everytown for Gun Safety, which supports stricter gun control laws.
The NRA has called New York's lawsuit politically motivated.
LaPierre testified that he feared James would try to put the NRA into receivership.
President Joe Biden's administration opposed the bankruptcy, with the Department of Justice's bankruptcy watchdog, the U.S. Trustee, urging its dismissal.
The NRA also has faced internal upheaval in recent years including a failed effort to oust LaPierre over allegations of mismanagement.
Although its headquarters are in Virginia, the NRA was chartered in NY in 1871 as a non-profit organisation and it is incorporated in the state. The Democratic president has taken some executive action on gun control and has called for broader steps that would require congressional passage including banning military-style assault weapons and large-capacity ammunition magazines.