Question : Why has the US National Rifle Association filed for bankruptcy?
(A) To avoid being investigated by New York’s Attorney General
(B) To avoid being investigated by California’s Attorney General
(C) To avoid being investigated by Arizona’s Attorney General
(D) To avoid being investigated by Florida’s Attorney General
Ans.(A)
Related facts
- On 15th January 2021, the US National Rifle Association (NRA), the most powerful gun lobbyist in the USA, filed for bankruptcy in an effort to avoid being investigated by New York’s Attorney General.
- Reincorporation
- NRA will now reincorporate in Texas, voluntarily filed for bankruptcy under Chapter 11 of the bankruptcy code along with a subsidiary in the US Bankruptcy Court for the Northern District of Texas, Dallas Division.
- NRA
- It is a non-profit organisation that was formed by two civil war veterans Col. William C. Church and Gen. George Wingate in 1871 in order to promote and encourage rifle shooting on a scientific basis.
- Reason of Investigation
- In August 2020, New York Attorney General Letitia James, a Democrat, sued the NRA based on allegations that the association’s top executives diverted millions of dollars for their personal trips.
- Before this, the NRA sued the state of New York in April 2020 over its decision to deem gun retailers as non-essential businesses that were subject to closure during the Covid-19 induced lockdown.
By – Pankaj Pandey