This may allow avoiding closing at the suit of the state of New York.
The National Rifle Association of the United States (NRA) filed for bankruptcy protection. The move could protect the NRA from being dissolved, which the New York State Attorney’s Office is seeking.
The powerful NRA filed a lawsuit in federal court in Dallas, Texas. At the same time, the NRA, registered in New York, announced its intention to re-register in Texas due to the “corrupt political environment” in New York. NRA Chief Executive Wayne LaPierre sent a letter to members stating, “We seek protection from New York City officials who illegally abuse their rights and use them as weapons against the NRA and its members.”
In August 2020, New York State Attorney General Letitia James filed a lawsuit declaring that the NRA’s activities violate state laws on nonprofit organizations. James said that the NRA management spent $ 64 million over three years to pay for expensive vacations, personal planes, etc. James also pointed out that the legal status of the NRA allows her to seek the dissolution of this organization.
Then the NRA filed a counterclaim in federal court in Albany, New York, in which it accused James of violating the constitutional right to free speech to achieve career goals. 16 Republican state attorneys General spoke in support of the lawsuit.
The latest NRA lawsuit is likely to stop the process in New York, and re-registration in Texas will deprive James of the right to dissolve this organization.