(Crankers) Lawsuit, criticism, and bankruptcy is what the National Rifle Association (NRA) is dealing with as they filed for Chapter 11 bankruptcy and plans to leave New York and reincorporate in Texas. The NRA had a lawsuit filed against them, by the New York Attorney General, Letitia James, alleging the group of misappropriating funds. Previous criticism before the filing of their bankruptcy, by the founder of Moms Demand Action, claimed the NRA had become a “personal piggy bank for its leadership.”
The NRA is technically listed as a nonprofit and they plan to leave New York and resettle in Texas. They filed their Chapter 11 in the United States Bankruptcy Court located in Dallas, TX.
When they filed, the NRA claimed they have assets somewhere between $100 million and $500 million, and liabilities in the same ranged according to a recent report on CNBC.
At least one creditor is owed $1.27 million. That is a former ad agency known as Ackerman McQueen and they are an unsecured creditor. Both Ackerman McQueen and the NRA have filed lawsuits against each other for various reasons.
The NRA’s largest unsecured creditor was its former ad agency Ackerman McQueen, which is owed $1.27 million, according to the filing. The controversial group and the ad company have filed contentious lawsuits against one another.
NRA CEO and executive vice president Wayne LaPierre expects there to be “no major changes” in their daily operations or workplace. LaPierre also suggested that the headquarters located in Fairfax, VA will not be affected nor move at this time, and the NRA as a whole is not insolvent. LaPierre’s statement can be read here.
When it comes to paying back creditors, the statement stated the following, “the NRA will move quickly through the restructuring process. Its day-to-day operations, training programs, and Second Amendment advocacy will continue as usual, which means the NRA will continue to rely on the service of its valued vendors.”
However, the NRA must have their filing reviewed, and NY’s Attorney General Letitia James said, “We will not allow the NRA to use this or any other tactic to evade accountability and my office’s oversight.”
As mentioned earlier, James had filed a lawsuit against the NRA that suggests their leadership had used millions of dollars for personal use and caused the nonprofit to lose $64 million.
The founder of Moms Demand Action, Shannon Watts, suggests the NRA had become a “front group” for manufacturers and a “personal piggy bank for its leadership.”
John Feinblatt, the president of Everytown (a safety group), made a strong statement criticizing the NRA. He stated the following, “let’s be clear about what’s happening here: The NRA — which is losing power and hemorrhaging money — is now filing for bankruptcy in an attempt to escape legal culpability for years of financial mismanagement and illegal self-dealing. This desperate maneuver is a de facto admission of guilt.”