The National Rifle Association (NRA) on Friday filed for Chapter 11 protection in federal bankruptcy court in Dallas, a move which could potentially allow the organisation to reincorporate in Texas and escape a lawsuit by New York’s attorney general seeking its dissolution.
In a message to the group’s members and backers on Friday, NRA CEO Wayne LaPierre stressed that its decision to file for bankruptcy was not due to financial problems.
"Don't believe what you read from our enemies. The NRA is not 'bankrupt' or 'going out of business’,” the statement read. "We are leaving the state of an attorney general who, just a few months ago, vowed to put us out of business through an abuse of legal and regulatory power.”
“Subject to court approval, the NRA is pursuing plans to reincorporate in the State of Texas,” the statement continued. “Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom.”
In August 2020, the NRA was sued by New York Attorney General Letitia James, who accused LaPierre and three other senior officials of violating corporate laws by diverting funds for their own personal benefit. James alleged that the NRA leadership’s use of the organisation as a “personal piggy bank” to fund their lavish lifestyles had cost the organisation $64 million over three years.
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In her lawsuit, James also said that the NRA’s incorporation as a nonprofit in New York gave her authority to seek its dissolution.
“The NRA’s claimed financial status has finally met its moral status: bankrupt,” James said in a statement released on Friday. “We will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”
