National Rifle Association declares bankruptcy, seeking to escape New York lawsuit

(Reuters) – The National Rifle Association filed for bankruptcy on Friday, a sudden move that could help the gun rights group evade a lawsuit filed by the New York attorney general over its disbandment.

The NRA filed for Chapter 11 protection in Federal Bankruptcy Court in Dallas, and said it plans to reincorporate in Texas to escape “a corrupt political and regulatory environment” in New York City, where it is now established.

“Texas appreciates the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom,” CEO Wayne LaPierre said in a letter to members. “We are seeking the protection of officials in New York who have unlawfully abused and militarized the powers they wield against the NRA and its members.”

The NRA was sued in August by New York Attorney General Letitia James, who accused LaPierre and other senior executives of personal dealings and mismanagement, and said the group’s activities violated the laws of the State governing non-profit organizations.

James said NRA officials embezzled millions of dollars to fund luxury lifestyles, including vacations and private jets, and to buy the silence and loyalty of former employees, costing the group $ 64 million over three years.

“The financial status claimed by the NRA has finally reached its moral status: bankrupt,” James said in a statement Friday. “We will not allow the NRA to use this or any other tactic to escape the responsibility and oversight of my office.”

In its own statement, the NRA did not promise any immediate changes in its operations or staffing and said it was not insolvent, with LaPierre adding that it was “as financially sound as we have been for decades. years ”.

The group said it would continue to defend the constitutional rights of its members under the Second Amendment, which guarantees the right to keep and bear arms.

Critics say the NRA is a catalyst for gun violence.

In his lawsuit, James said the incorporation of the NRA as a nonprofit in New York gave him the power to seek its dissolution. The NRA filed a lawsuit in federal court in Albany, New York, accusing it of violating its free speech rights because it didn’t like its policies.

The NRA accused James, a Democrat, of seeking a “death sentence for a business” in a partisan effort to achieve a “career goal.”

Sixteen Republican attorneys general have filed briefs supporting the NRA case.

Friday’s decision will likely put the New York trial on hold, and a reincorporation in Texas could strip James of his power to disband the group.