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 NY.
He says the NRA is filing for Chapter 11 protections as they reorganize to "streamline costs and expenses, proceed with pending litigation in a coordinated and structured manner, and realize many financial and strategic advantages".
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 group said it would continue to defend its members' constitutional rights under the Second Amendment, which guarantees the right to keep and bear arms.
"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.
Shortly after the announcement, James said she would not allow the NRA to "evade accountability" or oversight.
The NRA filed for Chapter 11 bankruptcy in federal court in Dallas and said it planned to incorporate in Texas, where records show it formed a limited liability corporation, Sea Girt LLC, in November 2020.
The 2nd amendment of the US Constitution enshrines the right to keep and bear arms
"This plan actually improves our business", he said.
The move will likely put the attorney general's lawsuit on hold, and a reincorporation to Texas could strip her of the ability to seek the group's dissolution.
LaPierre said the organization is hoping that moving to Texas will provide protection from New York's lawsuit.
"The NRA's claimed financial status has finally met its moral status: bankrupt", she said.
"You can be assured the Association will continue the fight to protect your interests in NY - and all forums where the NRA is unlawfully singled out for its Second Amendment advocacy", he added.
Today, the @NRA filed for bankruptcy and is fleeing for Texas. Another $200,000 is owed to Speedway Motorsports, the North Carolina-based company that owns and operates NASCAR tracks, according to the records.
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