In a 14-page decision, the Supreme Court of New York Friday rejected the National Rifle Association’s (NRA) attempt to stop the state’s investigation into the organization.

New York Attorney General (NYAG) Letitia James brought an investigation against the NRA in 2020. James alleged that the group was violating non-profit laws and committing tax fraud, and that it “instituted a culture of self-dealing mismanagement” leading the organization to lose more than USD 63 million over the past three years.

In 2021, the NRA filed a motion to dismiss. The NRA argued that the investigation was “unconstitutional retaliation” and that the organization was “committed to good governance.” Judge Joel Cohen dismissed the motion, allowing the case to proceed with the fraud claims, at the same time ruling against James’ attempt to dissolve the organization.

The attorney for the NRA said:

The NRA believes the NYAG’s pursuit was fueled by her opposition to the Association and its First Amendment activities in support of the Second Amendment. There is an extraordinary public record that the NYAG, as a candidate, vowed to target the Association — chilling evidence of her motivations toward a political adversary.

The NRA filed a bankruptcy case in Texas last year, which was dismissed for bad faith. This was also sued by the attorney general of Washington, DC.