The NRA files for bankruptcy (to restructure)

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(CNN Business) -

The National Rifle Association of the United States (NRA), the nation's leading gun ownership lobby, has filed for voluntary bankruptcy in Texas, the organization said Friday.

The group said it plans to leave New York and rejoin as a Texas nonprofit in a move it calls "Project Freedom."

The NRA said it is in its "strongest financial condition in years," but the restructuring will help "rationalize costs and expenses."

The announcement of filing for Chapter 11 (bankruptcy law) follows policy changes and allegations of financial mismanagement at the NRA in recent years.

New York Attorney General Letitia James filed a lawsuit last summer accusing the NRA's top leadership of violating laws governing nonprofits and using millions of dollars from the organization's reserves for use. personal and tax fraud.

James responded to the group's bankruptcy announcement on Friday, saying: "The financial status declared by the NRA has finally reached its moral state: bankrupt."

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