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The National Rifle Association, the powerful gun lobby that has been at the center of some of the nation's most heated debates over weapons rights, filed for Chapter 11 bankruptcy protection Friday.
The NRA's bankruptcy filing in Texas comes after the New York attorney general recently filed a lawsuit seeking to dissolve the group. The New York AG, Letitia James, has accused the organization of diverting millions in charitable giving for "personal use by senior leadership."
Chapter 11 bankruptcy is designed to allow companies or organizations to restructure their operations, shed debt, delay lawsuits and emerge as a sustainable enterprise. But it can lead to dissolution or liquidation.
The NRA said in a statement Friday that it is in its "strongest financial condition in years" and that it filed for bankruptcy protection to escape "a corrupt political and regulatory environment in New York."
But James has accused NRA leaders of wasteful, unchecked spending that led the organization to go from a $27.8 million surplus in 2015 to a $36.3 million net deficit in 2018.
The NRA, which did not immediately respond to a USA TODAY request for comment, said in a statement that it would make no immediate changes to its operations or workforce.
But the group also said it would use bankruptcy court to "streamline costs and expenses" and "proceed with pending litigation in a coordinated and structured manner" in pursuit of "many financial and strategic advantages."
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USA Today
The NRA's bankruptcy filing in Texas comes after the New York attorney general recently filed a lawsuit seeking to dissolve the group. The New York AG, Letitia James, has accused the organization of diverting millions in charitable giving for "personal use by senior leadership."
Chapter 11 bankruptcy is designed to allow companies or organizations to restructure their operations, shed debt, delay lawsuits and emerge as a sustainable enterprise. But it can lead to dissolution or liquidation.
The NRA said in a statement Friday that it is in its "strongest financial condition in years" and that it filed for bankruptcy protection to escape "a corrupt political and regulatory environment in New York."
But James has accused NRA leaders of wasteful, unchecked spending that led the organization to go from a $27.8 million surplus in 2015 to a $36.3 million net deficit in 2018.
The NRA, which did not immediately respond to a USA TODAY request for comment, said in a statement that it would make no immediate changes to its operations or workforce.
But the group also said it would use bankruptcy court to "streamline costs and expenses" and "proceed with pending litigation in a coordinated and structured manner" in pursuit of "many financial and strategic advantages."
<snip>
USA Today