The Boy Scouts of America filed for Chapter 11 bankruptcy protection Tuesday in an effort to keep operating while thousands of claims of sexual abuse by former members against the national youth group are litigated.
The organization filed for bankruptcy in Delaware early Tuesday, according to court documents. As a result, all civil suits against the youth organization will be suspended, CNN reported.
Through the bankruptcy filing, the organization will likely have to pay victims, but will also avoid lengthy and damaging jury trials in a number of 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, said 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 added.
The Boy Scouts have struggled with declining membership and rising costs, The Post reported earlier this month. The group has $1.4 billion in assets, according to its 2018 tax filing, and would also have to publicize the bankruptcy to reach as many victims as possible, lawyers previously told The Post.