National Rifle Association Files for Bankruptcy

Gun-rights group plans to move to Texas amid legal battle with New York’s attorney general

New York Attorney General Letitia James describes a lawsuit seeking to dissolve the National Rifle Association, alleging executives violated state nonprofit laws. The NRA filed a countersuit in New York state court, and President Trump suggested the organization should move to Texas. Photo: Justin Lane/Shutterstock (Originally published Aug. 6, 2020)

The National Rifle Association filed for bankruptcy protection and said it plans to restructure itself as a Texas nonprofit, the latest twist in its legal battle with New York Attorney General Letitia James.

The gun rights group, a New York-registered nonprofit since 1871, said it was taking the measures “to exit what it believes is a corrupt political and regulatory environment in New York.”

The New York attorney general’s office, which oversees the state’s charities bureau, filed a lawsuit last August seeking to dissolve the NRA, alleging that insiders violated the state’s nonprofit laws by illegally diverting tens of millions of dollars from the group through excessive expenses and contracts that benefited relatives or close associates.

The NRA has denied the allegations and claimed they were politically motivated.

The NRA filed a chapter 11 bankruptcy petition Friday in U.S. Bankruptcy Court for the Northern District of Texas, court documents show, listing both assets and liabilities of $100 million to $500 million and more than 200 creditors.

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