DALLAS — While a federal judge has dealt a setback to the National Rifle Association in its effort to secure bankruptcy protection, the Fairfax-headquartered nonprofit is still considering a move out of Virginia. Judge Harlin Hale of the U.S. Bankruptcy Court in Dallas on Tuesday dismissed the NRA's petition for Chapter 11 bankruptcy reorganization.
CEO Wayne LaPierre had acknowledged in his bankruptcy court testimony that the organization had filed for bankruptcy to stop an investigation launched against the group by New York Attorney General Letitia James, according to The New York Times.
Hale took issue with the secrecy and lack of disclosure within the organization, but left open the possibility for the NRA to refile, according to The Texas Lawbook.
But none of that is stopping the NRA from exploring a headquarters relocation out of Fairfax in order to restructure as a Texas nonprofit, thus moving its operations to a state where it counts more than 400,000 members, the group noted in a statement in response to Hale's ruling.
"The NRA can still pursue establishing business operations in Texas, and the organization will continue to explore moving its headquarters there from Virginia," according to the NRA statement.
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