Boy Scouts of America Files for Chapter 11 Bankruptcy
February 18, 2020
The Boy Scouts of America has filed for Chapter 11 bankruptcy as of February 18. The organization stated that they filed for bankruptcy to “equitably compensate victims who were harmed during their time in Scouting and continue carrying out its mission for years to come.”
The bankruptcy process will be used to form a Victims Compensation Trust to “provide equitable compensation for victims.”
In 2019, it was revealed that almost 8,000 leaders in the Boy Scouts of America had been accused of sexually abusing children. The allegations date back decades. Even more victims have come forward over the last few months. The bankruptcy declaration will delay pending lawsuits and set a date former Boy Scouts can file sexual abuse claims. The Boy Scouts estimated its liabilities to be $500 million to $1 billion.
Source: US News