National Rifle Association says it filed for bankruptcy in restructuring

(Reuters) – The National Rifle Association filed petitions in a U.S. bankruptcy court on Friday seeking creditor protection through restructuring, the gun rights group said.

The NRA has filed the Chapter 11 petitions in U.S. bankruptcy court in Dallas, it said in a press release.

The NRA has said it will restructure itself as a Texas nonprofit out of what it has called a “corrupt political and regulatory environment in New York,” where it is currently registered.

The influential group said in a statement that there would be no immediate changes in its operations or workforce, and that it “will continue to advance the business – confronting anti-Second Amendment activities, promoting the firearms safety and training, and advancing government programs. across the United States. “

The Second Amendment to the US Constitution guarantees the right to keep and bear arms.

Last August, New York State Attorney General Letitia James filed a lawsuit to dissolve the NRA, alleging that senior leaders of the non-profit group embezzled millions of dollars for personal gain. and to buy the silence and loyalty of former employees.

James’ lawsuit in Manhattan state court alleges that NRA leaders paid for family trips to the Bahamas, private jets and expensive meals that helped reduce $ 64 million in the balance sheet of the NRA in three years, turning a surplus into a deficit.

The NRA responded by prosecuting James, a Democrat, in federal court, claiming it violated the NRA’s right to free speech and seeking to block its investigation. The dispute is still ongoing.

The NRA over the past decades has been one of the main voices opposed to proposed or existing gun control measures.

The NRA’s actions will likely put the attorney general’s trial on hold, and a reincorporation could deprive it of the ability to seek the group’s disbandment. In his lawsuit, James said the incorporation of the NRA as a nonprofit in New York gave him the power to dissolve it.