Boy Scouts File for Bankruptcy as a Result of Declining Membership and Sexual Abuse Lawsuits
Jose Nino
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On Tuesday, February 18, 2020, The Boy Scouts of America filed for Chapter 11 bankruptcy protection in order to stay running as thousands of sexual abuse claims from former members pile up against the youth organization in the courts.
The organization initiated its bankruptcy proceedings in Delaware on Tuesday morning, per court documents. Consequently, all civil suits filed against the youth organization will be suspended, according to a CNN report.
The organization will likely still have to pay victims throughout the bankruptcy proceedings, but it will not have to go through the arduous jury trial process in certain states.
.“The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting. We are outraged that there have been times when individuals took advantage of our programs to harm innocent children,” Roger Mosby, the Boy Scouts’ president and chief executive officer, announced in a statement Tuesday.
“While we know nothing can undo the tragic abuse that victims suffered, we believe the Chapter 11 process — with the proposed Trust structure — will provide equitable compensation to all victims while maintaining the BSA’s important mission,” he continued.
The New York Post recently reported that Boy Scouts have been bogged down with declining membership and rising costs. According to its 2018 tax filing, the youth group has $1.4 billion in assets.
Lawyers informed the Post that the Boy Scouts would have to make the bankruptcy go public in order to reach as many victims as possible.
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