Bankrupt NRA Cries Foul Over New York Pressure

The National Rifle Association filed a lawsuit against the attorney general in New York, saying the lawmaker overstepped her bounds because of her opposing views.

The NRA, in a case filed in the New York Supreme Court, argued Attorney General Letitia James was “weaponizing” the power of her office.

“James commenced her investigations and this action against the NRA with the sole purpose of seeking to dissolve a political enemy,” the gun advocacy group told Reuters.

In August, James sued the NRA and Chief Executive Wayne LaPierre over allegations the not-for-profit group was diverting funds to pay for vacations and other questionable expenses. After the lawsuit, the group filed for bankruptcy and announced plans to restructure as an organization in Texas, saying the New York regulatory environment was politically corrupt.

“This strategic plan represents a pathway to opportunity, growth and progress,” LaPierre said in a statement. “Obviously, an important part of this plan is ‘dumping New York.’”

The attorney general’s office suggested the move to Texas was a tacit ploy to escape bankruptcy proceedings in New York. Because of the relocation, a judge in Texas is now weighing a New York case that seeks to dismiss the NRA’s filing claims.

The group filed for bankruptcy protection in New York the same day it announced it was reincorporating in Texas. Adam Levitin, a bankruptcy professor at Georgetown University, said the latest actions from the NRA amount to nothing more than a “Hail Mary pass,” ABC News reported on Tuesday.

The NRA has been struggling financially for years.

ABC also revealed in-fighting within the group’s board of directors. Phillip Journey, a Kansas state judge and a recent board electee, called for an independent auditor to examine "the veracity of the alleged fraud, dishonesty, incompetence, and gross mismanagement that has plagued the NRA's reputation."

But William Brewer, who serves as a counsel to the NRA shot back against the allegations the group went against its own bylaws in its bankruptcy claim.

"Unfortunately, [Judge Journey] seems to mistakenly believe the NRA reorganization plan did not follow board and internal protocol," he said. "This plan was undertaken in full compliance with NRA policy.”