National Rifle Association files for Chapter 11 bankruptcy

Clay Curtis
January 16, 2021

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.

LaPierre - who is also reportedly the subject of an IRS investigation for criminal tax fraud - additionally accused James and New York Gov. Andrew Cuomo (D) of "gross overreach" and said moving to Texas offered "protection from New York officials who illegally abused and weaponized the powers they wield against the NRA and its members".

The group plans to leave New York State, where it was founded in 1871, and reincorporate as a Texas nonprofit in a move it is calling "Project Freedom", according to a statement published Friday.

The National Rifle Association has filed Chapter 11 protections and plans to reincorporate their organization in Texas.

"The NRA's claimed financial status has finally met its moral status: bankrupt", James said.

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. 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 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.

A woman holds an automatic rifle at the 2019 NRA annual meeting
The 2nd amendment of the US Constitution enshrines the right to keep and bear arms

James sued the NRA, LaPierre, and three other current and former executives in August for allegedly losing $64 million of the nonprofit's funds. Amid its struggles to stay afloat, it was even suggested that Donald Trump, Jr., take over for NRA CEO and Executive Vice President Wayne LaPierre.

The group had countersued, accusing Ms. James of trampling on its First Amendment rights.

The organization says it will continue to operate out of Virginia while it explores whether to move its headquarters elsewhere, too. The organization also accused her of weaponizing her regulatory and legal power under the guise of protecting state residents. "In the meantime, the NRA's general business operations will remain in Fairfax", the organization said.

The NRA and Ackerman McQueen went through a messy public breakup in 2019 after Mr. LaPierre survived an alleged coup attempt by former President Oliver North at the group's annual convention.

For decades the NRA has represented the views of millions of gun owners and enthusiasts across the United States, fighting with substantial success to loosen and eliminate gun controls, citing the Constitution's Second Amendment right to bear arms.

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