Boy Scouts File Bankruptcy; Vows to Compensate Sex Abuse Victims

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☆ Another Institution Destroyed by Cultural Marxism

The Boy Scouts of America, after decades of being crippled by child sex abuse claims, announced early Tuesday it had filed for Chapter 11 bankruptcy, vowing to both “compensate victims” and “continue carrying out its mission for year to come.” In a statement announcing the filing, BSA said it “cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting.”

Two lawyers who individually have represented hundreds of victims confirmed to the Daily News that the 110-year-old organization was filing papers in Delaware federal bankruptcy court.

In a statement announcing the filing, BSA said it “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,” stated Roger Mosby, president and CEO of the BSA.“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.”

Along with setting up a Victims Compensation Fund, the organization said it “has an important duty to keep children safe, supported and protected while preparing them for their futures, and the organization has every intention of continuing to fulfill these important responsibilities.”

“Scouting will continue to provide unparalleled programs to young people – keeping them safe, supported and protected as it prepares them for their futures,” the organization stated.

As the embattled Boy Scouts begin the long process of restructuring debt, any pending sex abuse claim against the organization will be put on hold, lawyers told the Daily News.

”It’s an injunction against any case that’s filed in any state across the country,” said attorney Aitan Goelman, one of the lawyers at Abused in Scouting, a cohort of law firms that represents thousands of abuse victims. ”The creditors will file their claims. All other liabilities will be extinguished.”

Rumors of the Boy Scouts’ bankruptcy had been swirling since December 2018, as it struggled with declining membership and rising costs.

The national organization, which has about $1.4 billion in assets, was reportedly mulling a strategy that would compensate victims while protecting the hefty pot of money held by its many local councils — about $3.3 billion, according to The Wall Street Journal.

“You’re talking about thousands of perpetrators,” Seattle-based lawyer Michael Pfau, who has represented over 300 Boy Scout victims in 34 states, told The News. “You’re talking about tens of thousands of victims. This will be the largest bankruptcy the country has ever seen, and likely one of the largest corporate bankruptcies.”

According to Pfau, the central issue in the bankruptcy “is how are the local councils handled. The local councils are really the eyes and ears of the Boy Scouts … the local councils not only hold enormous assets, they are all responsible in many cases for the abuse,” he said.

Pfau added that the BSA goal is to “emerge with the settlement of all claims and then release from the claimants, which means, in exchange for some compensation, the claimants will not sue the Boy Scouts in the future.”

“It’s a way to regain some measure of control of a situation that has gotten out of control.”