Front Page

Boy Scouts of America Files for Chapter 11 Bankruptcy Following Abuse Lawsuits

Image source: BSA

The Boy Scouts of America has filed for bankruptcy protection following multiple abuse lawsuits.

The BSA says the move will allow it to build a compensation fund for abuse victims.

As a result of the move, all civil lawsuits against it are put on hold.

The BSA is struggling with declining membership as well as abuse claims.

Chief executive Roger Mosby said in a statement: “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.”

Court papers filed in Delaware listed liabilities of up to $1 billion and assets of as much as $10 billion, reports say.

The filing was made under Chapter 11 of the US bankruptcy code which allows the group to keep operating and pay its creditors over time.

The bankruptcy allows the BSA to bring all of the lawsuits into one court and try to negotiate a settlement, rather than using its funds to fight each case in court.

The group said it was setting up a trust fund to compensate victims.

Boy Scouts of America accused of covering up the paedophile leader Rick Turley

Glenn Taylor: US scout leader faces criminal charges after Utah ancient rock scandal

Roger Mosby said in a statement: “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.”

According to the Wall Street Journal, the BSA has 261 councils which operate local troops and own assets including land in many states. The bankruptcy move is designed to protect those councils, which hold about 70% of all BSA assets, the publication says.

In its statement, the BSA said the councils, which are legally separate and financially independent of the national organization, had not filed for bankruptcy.

Nancy Clayson

Nancy is a young, full of life lady who joined the team shortly after the BelleNews site started to run. She is focused on bringing up to light all the latest news from the technology industry. In her opinion the hi-tech expresses the humanity intellectual level. Nancy is an active person; she enjoys sports and delights herself in doing gardening in her spare time, as well as reading, always searching for new topics for her articles.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago