I’m sure Wayne and Bill Brewer are disappointed.
Judge Hale said the decision to declare bankruptcy was Wayne’s alone and therefore he gave Wayne’s testimony the most scrutiny (p. 18). It was Wayne’s own testimony (p. 23) that sunk the case as he ultimately admitted the primary purpose was to gain a litigation advantage against the NY Attorney General by taking dissolution off the table using bankruptcy. Once it was found that the primary purpose was a litigation advantage, it was the bankruptcy had to be considered in bad faith. The alternative to dismissal was an examiner or trustee but Judge Hale said the strong financial condition plus the new safeguards mitigated against the appointment of either.
I think one of the key paragraphs in the whole decision was this one on page 34:
What concerns the Court most though is the surreptitious manner in which Mr. LaPierre
obtained and exercised authority to file bankruptcy for the NRA. Excluding so many people from
the process of deciding to file for bankruptcy, including the vast majority of the board of directors,
the chief financial officer, and the general counsel, is nothing less than shocking.
It is time for the Board of Directors to step up and do what they should have done a long time ago and that is clean house starting at the top.