The National Rifle Association voluntarily filed for Chapter 11 bankruptcy and plans to reincorporate in Texas as a nonprofit, the association announced on Friday.
In its bankruptcy petition, the NRA said its assets and liabilities were as high as $500 million, according to Bloomberg.
The association has been registered as a nonprofit in New York since 1871. But last August, New York Attorney General Letitia James filed a lawsuit to dissolve the NRA, accusing the association of reallocating money to its executives and creating no-show contracts to buy “silence” and encourage “loyalty.”
In its Friday announcement, the NRA said it was taking these new measures to “exit what it believes is a corrupt political and regulatory environment in New York.”
“This strategic plan represents a pathway to opportunity, growth and progress,” NRA Chief Executive Officer and Executive Vice President Wayne LaPierre, who is a defendant in the New York A.G.’s suit, said in a statement. “Obviously, an important part of this plan is ‘dumping New York.’ 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.”
James responded to the news in her own statement, saying, “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.”
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