The National Rifle Association (NRA) announced Friday in a press release that it filed Chapter 11 bankruptcy and will reincorporate in Texas. The association claims that the move is a part of strategic maneuvering for its betterment. This kind of maneuvering is legally permitted when an organization files Chapter 11 bankruptcy.
According to the press release, the NRA blames “what it believes is a corrupt political and regulatory environment in New York.” It mentions that the move to Texas will enable the nonprofit to start down a new path with more sustained growth and continued success.
The NRA aims to move quickly through the restructuring process while utilizing “the protection of the bankruptcy court,” which may enable it to “dump New York.” It asserts that this is merely a chess move to avoid New York’s “toxic politics,” not a response to financial challenges because this move comes “at a time when the NRA is in its strongest financial condition in years.”
Critics are questioning the act because of the recent lawsuit against the NRA by New York Attorney General Letitia James that claims that the executives have been diverting charitable contributions made to the organization to their own pockets. New York Rep. Alexandria Ocasio-Cortez said on Friday, “We filed suit against the NRA because they were diverting funds from this charitable organization for their own personal use and we will continue our effort because this organization has gone unchecked for years and it’s critically important that we continue to hold them accountable, even in bankruptcy court.”
The restructuring move is not supposed to change any functions of the NRA and is supposed “to streamline costs and expenses, proceed with pending litigation in a coordinated and structured manner, and realize many financial and strategic advantages.”
NRA President Carolyn Meadows said that “the plan allows us to protect the NRA and go forward with a renewed focus on Second Amendment advocacy.” NRA CEO Wayne LaPierre said that “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. This is a transformational moment in the history of the NRA.” He did not mention the lawsuit against the association.