The National Rifle Association (NRA) filed for bankruptcy last week in a move that may help the guns rights group evade a lawsuit in New York seeking its dissolution.
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On Friday, the NRA visited the federal bankruptcy court in Dallas and filed for Chapter 11 bankruptcy protection. The group also stated it will seek reincorporation in Texas to “escape a corrupt political and regulatory environment”, a description of its current home– New York.
“Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom,” Chief Executive Wayne LaPierre said in a letter to group members. “We seek protection from New York officials who illegally abused and weaponized the powers they wield against the NRA and its members.”
LaPierre is referring to an ongoing case stemming from New York Attorney General Letitia James suing the NRA in August, accusing senior leadership of self-dealing and mismanagement, along with violating state nonprofit laws.
The suit claims NRA officials diverted $64 million dollars over three years to fund luxury lifestyles, including vacations and private jets, and to buy the silence and loyalty of former employees.
“The NRA’s claimed financial status has finally met its moral status: bankrupt,” James said in a statement on Friday. “We will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”
The NRA’s incorporation as a nonprofit in NY gave Attorney General James legal authority to seek its dissolution. The NRA filed a countersuit in federal court accusing her, a democrat, of violating its free speech rights because she disliked its politics.
The bankruptcy filing will likely put a pause on the New York suit, and reincorporation in Texas could strip James’ power to dissolve the group.
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