The NRA has been slammed with complaints over its lavish spending and internal battles and is the subject of a lawsuit by New York Attorney General Letitia James
The US National Rifle Association has announced it has filed for bankruptcy, seeking protection from creditors by restructuring as a Texas non-profit.
"Under this plan, the Association wisely seeks protection from NY officials who it believes have illegally weaponized their powers against the NRA and its members", said William A. Brewer III, an attorney for the group in its legal battles in NY.
The coronavirus pandemic has also upended the NRA, which past year laid off dozens of employees, canceled its national convention and scuttled fundraising.
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"The NRA's claimed financial status has finally met its moral status: bankrupt", she said.
The NRA said it would restructure as a Texas nonprofit to exit what it said was a "a corrupt political and regulatory environment in New York" state, where it is now registered.
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It comes five months after NY 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.
The NRA was founded in NY in 1871 and has since presented itself as a defender of Second Amendment rights. Attorney General Letitia James sought in court to have the organization dissolved over allegations of financial fraud. "In the meantime, the NRA's general business operations will remain in Fairfax", the organization said. "While we review its bankruptcy filing, we will not allow the NRA to use this or any other tactic to evade accountability and my office's oversight".
The largest single claim, totaling more than $1.2 million, was from Ackerman McQueen, the NRA's former public relations firm. The lawsuit is pending.
"The plan can be summed up quite simply: We are DUMPING New York, and we are pursuing plans to reincorporate the NRA in Texas", wrote Wayne LaPierre, the NRA's CEO and executive vice president.
Republican Texas Gov. Greg Abbott quickly welcomed the news, tweeting: "Welcome to Texas - a state that safeguards the 2nd Amendment".
"The NRA has no immediate plans to move its headquarters, but we have formed a committee that is exploring all of our strategic options", NRA First Vice President Charles Cotton said in a statement emailed to The Washington Post.
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