US gun lobby group the National Rifle Association says it has filed bankruptcy petitions in a US court as part of a restructuring plan.
The NRA is dumping New York as its headquarters, chief executive Wayne LaPierre says. Photo: AFP
The group said it would restructure as a Texas nonprofit to exit what it said was a "a corrupt political and regulatory environment in New York", where it is currently registered.
The NRA which is beloved by supporters of the rights to bear arms in the US and reviled by others, said in a statement: "This is the most transformational moment in the history of the NRA.
"Texas values the contributions of the NRA, celebrates our law-abiding members, and joins us as a partner in upholding constitutional freedom.
"The move will enable long-term, sustainable growth and ensure the NRA's continued success as the nation's leading advocate for constitutional freedom - free from the toxic political environment of New York," the NRA said.
Chapter 11 bankruptcy allows entities to continue operating while working on a plan to repay creditors. The petition listed assets and liabilities of as much as $US500 million ($NZ701m) each.
The organisation has been beset by complaints over lavish spending and internal battles as it has battled a lawsuit by New York Attorney General Letitia James to dissolve the New York-based organisation. Last August she accused the NRA's leader Wayne LaPierre and three others of fleecing it.
New York Attorney General Letitia James speaks to the media after announcing the lawsuit in New York last August. Photo: AFP
Washington DC Attorney General Karl Racine filed a separate lawsuit against the NRA's charitable arm, accusing it of misusing donor funds.
The NRA counter-sued James in federal court, accusing James of violating its First Amendment rights. The organisation also accused her of weaponising her regulatory and legal power under the guise of protecting state residents.
Responding to the latest development, James said in a statement that she would not allow the NRA to use its bankruptcy proceedings to evade her office's oversight.
For years, the NRA has received millions of dollars annually from the NRA Foundation, whose donors get a tax deduction. But the Covid-19 pandemic has disrupted the grassroots fund-raisers that have been so successful.
"The plan can be summed up quite simply: We are DUMPING New York, and we are pursuing plans to reincorporate the NRA in Texas," LaPierre, the NRA's chief executive, wrote in a letter on the organisation's website, citing "costly, distracting and unprincipled attacks" by politicians.
Last August James said the NRA had diverted millions of dollars to its leaders including LaPierre, for their personal use.
"For these years of misconduct we are seeking an order to dissolve the NRA in its entirety," she said.
James said that the four named defendants - LaPierre, Wilson Phillips, Joshua Powell and John Frazer - "instituted a culture of self-dealing, mismanagement and negligent oversight at the NRA that was illegal, oppressive and fraudulent".
The attorney general outlined a litany of charges against the defendants, but accused LaPierre, long the face of the powerful gun lobby group, of being the "central figure" behind the organisation's wrongdoings.
The case filed by James' office alleged that more than $US64m was lost in just three years as a result of the defendants' abuse.
One example of misconduct alleged in the lawsuit states that LaPierre visited the Bahamas more than eight times by private plane using funds intended for the NRA, for a total cost of $US500,000.
The corruption "is so broad", James said, that total dissolution of the organisation is necessary.
Responding to questions, James, a Democrat, rejected the notion that the charges against the NRA - closely tied to the Republican party - were at all influenced by her own politics.
At the time the NRA described the lawsuit as a "baseless, premeditated attack".
In a statement, NRA president Carolyn Meadows decried the lawsuit as "a transparent attempt to score political points".
"As evidenced by the lawsuit filed by the NRA today against the [New York Attorney General] we not only will not shrink from this fight - we will confront it and prevail," she said
Speaking to reporters outside the White House, President Donald Trump called the New York lawsuit a "very terrible thing".
- Reuters / Bloomberg / BBC