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Boy Scouts Seek Chapter 11 Protection From Sex-Abuse Lawsuits

Submitted by jhartgen@abi.org on

The Boy Scouts of America today filed for bankruptcy protection, as one of the country’s largest youth organizations tries to endure intensifying legal pressure over accusations of childhood sexual abuse going back decades, the Wall Street Journal reported. The chapter 11 filing covers the national Boy Scouts organization and automatically halts the hundreds of lawsuits it faces alleging sexual misconduct by employees or volunteers. The Boy Scouts are seeking to compensate claimants through bankruptcy proceedings while protecting 261 local scouting councils across the country and the billions of dollars in assets they hold. The bankruptcy filing marks a watershed moment in the 110-year history of the Boy Scouts, which for years have been embroiled in lawsuits blaming the organization for failing to screen out sexual predators. It said in court papers that its “ability to deliver its mission to future generations of scouts may be in peril” unless it can reach a broad settlement of hundreds of current and future sex-abuse claims. Laws passed in California, New York and other states have created temporary windows allowing for sex-abuse lawsuits to be filed regardless of when the alleged abuse occurred, exposing the Boys Scouts to an unprecedented level of potential liability. These laws took effect in more than a dozen states last year, opening the courthouse doors to more potential claimants. States including Florida, Ohio and Virginia are also considering passing similar legislation. In court papers, the Boy Scouts said the cost of defending and resolving sex-abuse claims “has become unsustainable,” totaling more than $150 million in settlements and legal fees since 2017. The Boy Scouts generated roughly $394 million in total gross revenue last year, according to court papers. There are roughly 275 pending lawsuits, and attorneys representing victims have supplied information on roughly 1,400 additional claims that haven’t been filed, roughly 90% of them alleging abuse more than 30 years ago, court papers said.