The National Rifle Association has filed for bankruptcy and announced it is 'dumping' New York in favor of Texas where they have...
The National Rifle Association has filed for bankruptcy and announced it is 'dumping' New York in favor of Texas where they have some 400,000 members, just months after the NY Attorney General filed a bombshell lawsuit trying to dissolve the group.
The gun rights advocacy group announced on Friday that it has filed the Chapter 11 petitions in US Bankruptcy Court in Dallas as part of a restructuring plan in a bid to cut its ties with New York.
The NRA, whose headquarters are in Virginia, said in a statement it was going to restructure as a Texas nonprofit to exit what it said was a 'a corrupt political and regulatory environment in New York' where it has been incorporated for 150 years.
It comes five months after New York state Attorney General Letitia James sued to dissolve the NRA, alleging senior leaders of the nonprofit group diverted millions of dollars for personal use and to buy the silence and loyalty of former employees.
'Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom,' NRA CEO Wayne LaPierre said in a letter to members. 'We seek protection from New York officials who illegally abused and weaponized the powers they wield against the NRA and its members.'
The gun rights advocacy group announced on Friday that it has filed bankruptcy petitions in US court as part of a restructuring plan in a bid to remove its ties to New York
President Trump is pictured above with NRA CEO Wayne LaPierre back in 2019. Trump had urged the group back in August to move to Texas to avoid legal hassles
COVID-19 has also upended the NRA, which last year laid off dozens of employees, canceled its national convention and scuttled fundraising. Still, the NRA claimed in announcing the move that the organization was 'in its strongest financial condition in years.'
In a statement announcing the changes, LaPierre said the move to Texas and the bankruptcy filing was part of a strategic plan.
'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,' LaPierre said. 'This is a transformational moment in the history of the NRA.'
In the New York lawsuit filed last August, James, who is a Democrat, accused LaPierre and three of his current or former top executives of using the organization as their 'personal piggy bank' for years.
The lawsuit alleged NRA leaders paid for family trips to the Bahamas, private jets and expensive meals that contributed to a $64 million reduction in the NRA's balance sheet in three years, turning a surplus into a deficit.
She sought to have the organization dissolved over alleged self-dealing by top leaders of the group.
New York Attorney General Letitia James announced in August that she was suing the NRA
The NRA angrily blasted the suit, saying at the time: 'You could have set your watch by it: the investigation was going to reach its crescendo as we move into the 2020 election cycle. It's a transparent attempt to score political points and attack the leading voice in opposition to the leftist agenda,' the group said.
The NRA counter-sued James, alleging that her bombshell lawsuit 'was a baseless, premeditated attack on our organization and the Second Amendment freedoms it fights to defend'.
The NRA accused James, a Democrat, of seeking a 'corporate death sentence' in a partisan push to fulfill a 'career goal.'
Sixteen Republican attorneys general filed a brief supporting the NRA's case.
President Trump subsequently urged the group to move to Texas to avoid future legal hassles, saying in August: 'I think the NRA should move to Texas and lead a very good and beautiful life'.
The NRA's actions will likely put the attorney general's lawsuit on hold and a reincorporation could strip her of the ability to seek the group's dissolution.
In her lawsuit, James had said the NRA's incorporation as a nonprofit in New York gave her authority to dissolve it. The litigation remains pending.
James on Friday vowed to continue her legal fight against the NRA, saying in a statement: '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.'
The NRA, whose headquarters are in Virginia (above), said in a statement they were going to restructure as a Texas nonprofit to exit what it said was a 'a corrupt political and regulatory environment in New York' where it has been incorporated for 150 years
The NRA said they filed the bankruptcy petition to seek protection from creditors by restructuring.
The influential group said in a statement there would be no immediate changes to its operations or workforce and that it 'will continue with the forward advancement of the enterprise - confronting anti-Second Amendment activities, promoting firearm safety and training, and advancing public programs across the United States.'
The NRA said it will study whether relocating segments of its operations or its headquarters to Texas would benefit members, but that for now the headquarters will remain in Virginia.
The gun-rights group boasts about 5 million members nationwide. Though headquartered in Virginia, the NRA was chartered as a nonprofit in New York in 1871 and is incorporated in the state.
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