National Rifle Association files for bankruptcy Texas court rejects

The National Rifle Association (NRA) filed for bankruptcy protection in federal bankruptcy court in Dallas, Texas, earlier this year and also plans to move its headquarters to Texas. But a federal bankruptcy court judge in Dallas, Texas, dismissed the petition Tuesday (11) on the grounds that he did not believe that “the threat to the NRA’s existence is a threat that the Bankruptcy Code was designed to prevent. Local media expects the ruling to mean that the NRA’s domicile will remain in New York State.

The 37-page ruling states that the Chapter 11 petition was not a good faith claim, but rather an attempt to avoid regulation and charges by New York State. The ruling also cites a long-standing lack of transparency in the NRA’s management as a nonprofit organization and criticizes NRA Executive President Wayne Lapierre for filing the Chapter 11 petition without the consent or knowledge of the vast majority of board members and general counsel.

Founded in 1871 in New York State, the NRA now has about 5 million members nationwide and is the largest gun owners’ organization in the country and one of the most influential lobbying groups. It has consistently opposed gun control and supported Republicans, including former President Trump. New York State Attorney General James sought to disband the NRA last August, accusing LaPierre and other top members of embezzling $64 million (about $500 million) in funds to pay for his lavish private trips. LaPierre denied any involvement in the misconduct.