The National Rifle Association (NRA), on Friday, announced that it was filing for bankruptcy, an AP report reads. The powerful gun lobby is filing for bankruptcy to protect itself from creditors and apparently move its operation to Texas and dodge a corruption probe in New York.
The organisation, which was set up in 1871, and one of its subsidiaries filed petitions for so-called Chapter 11 bankruptcy protection in a Dallas court, a Reuters report reads.
New York Attorney General Letitia James in August 2020 filed a lawsuit seeking to dissolve the NRA. In the lawsuit, James charges senior leadership in the organisation of misusing millions of dollars from its charitable organisation for personal use, overtly doling out lucrative, no-show contracts to former employees in a bid to buy their loyalty and awarding contracts to the financial gain of close associates and family. The decision to relocate its operations to Texas and reincorporate itself as a non-profit will ensure the organisation's survival, “free from the toxic political environment in New York.”
“The NRA’s claimed financial status has finally met its moral status: bankrupt. 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,” New York Attorney General James told AFP.
The organisation, headquartered in Virginia, has about 5 million members. The organisation, over decades, has shaped major political races by supporting those in line with its views, while pummelling those in favour of firearms regulation.