National Rifle Association Files for Bankruptcy

J. Clara Chan
·1-min read

The National Rifle Association voluntarily filed for Chapter 11 bankruptcy and plans to reincorporate in Texas as a nonprofit, the association announced on Friday.

In its bankruptcy petition, the NRA said its assets and liabilities were as high as $500 million, according to Bloomberg.

The association has been registered as a nonprofit in New York since 1871. But last August, New York Attorney General Letitia James filed a lawsuit to dissolve the NRA, accusing the association of reallocating money to its executives and creating no-show contracts to buy “silence” and encourage “loyalty.”

Also Read: New York Attorney General Files Lawsuit to Dissolve National Rifle Association

In its Friday announcement, the NRA said it was taking these new measures to “exit what it believes is a corrupt political and regulatory environment in New York.”

“This strategic plan represents a pathway to opportunity, growth and progress,” NRA Chief Executive Officer and Executive Vice President Wayne LaPierre, who is a defendant in the New York A.G.’s suit, said in a statement. “Obviously, an important part of this plan is ‘dumping New York.’ The NRA is pursuing reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.”

James responded to the news in her own statement, saying, “The NRA’s claimed financial status has finally met its moral status: bankrupt. While we review this filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”

Read original story National Rifle Association Files for Bankruptcy At TheWrap