Boy Scouts of America files for bankruptcy after sex scandals, $1 billion in liabilitiesChristian Fernsby ▼ | February 18, 2020
The Boy Scouts of America (BSA) has filed for bankruptcy protection in a move that the group says will allow it to build a compensation fund for sex abuse victims.
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As a result of the move, all civil lawsuits against it are put on hold.
The group is struggling with declining membership as well as abuse claims.
"The BSA cares deeply about all victims of abuse and sincerely apologises 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," chief executive Roger Mosby said in a statement.
Court papers filed in Delaware listed liabilities of up to $1bn (£768m) and assets of as much as $10bn, 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 organisation 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. ■