NRA board member asks bankruptcy court to assign independent examiner

By Sarah Lizee

Olympia, Wash., Feb. 9 – A board member of the National Rifle Association of America is asking the U.S. Bankruptcy Court for the Northern District of Texas to appoint an independent examiner to investigate the governance of the debtors and the actions of its management, according to a motion filed Monday.

The company has announced that the goal of the bankruptcy case is to terminate its corporate existence in New York and reconstitute the organization under Texas law. If successful, the company wishes to avoid the ongoing challenges to its corporate charter brought by the State of New York and other ongoing litigation.

The board member said that while they aren’t necessarily opposed to the NRA being organized as a Texas entity, they are concerned that the underlying managerial and operational problems of the NRA, as alleged by members of the official committee of unsecured creditors and the Attorneys General of the District of Columbia and the State of New York, will continue to hinder the NRA’s mission if reorganization as a Texas entity is the sole focus of the bankruptcy proceeding.

The board member said they are seeking appointment of an examiner to “bring to light the veracity of the alleged fraud, dishonesty, incompetence and gross mismanagement that has plagued the NRA’s reputation, caused significant alienation of the association’s members and supporters, and hampered its ability to fulfill its core organizational purpose.”

“The best path to ensure that the NRA seizes upon the opportunity before it to recommit to its most historical ideals is to appoint an independent examiner to add transparency and confidence to the bankruptcy process,” they said.

If appointed, the examiner would investigate the actions of debtors’ pre- and post-petition management; the management practices being employed in the operation of the non-profit organization; the compensation of management; the benefits and perks being provided to the debtors’ management team; and the propriety of arrangements with certain vendors.

The gun rights advocacy group filed Chapter 11 bankruptcy on Jan. 15 under case number 21-30085.

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