One of the nation's oldest and largest youth organizations, The Boy Scouts of America filed for bankruptcy in the Delaware court, after the organization faces lawsuits in alleged sexual misconduct cases spanning several decades.
Several states passed laws last year were victims of sexual abuse from years ago could sue for damages, this caused several difficulties in the finances of Boy Scouts paying for cases of sexual abuse.
A law firm has been representing three hundred victims in New York since last April, one of the firm's lawyers mentions that this could be one of the "large-scale bankruptcies" related to sexual abuse cases.
It is talking about one of the largest bankruptcies seen in the United States, and at the corporate level. Almost thousands of perpetrators and three hundred cases of sexual abuse are being discussed.
A fund called the Victims Compensation Trust will be created during the bankruptcy process. The national organization mentioned that they are more than willing to compensate the victims who were injured during the time they were scouts, and that the organization of more than one hundred years will still remain active in the coming years.
The president and chief executive of the BSA (Boy Scouts of America), Roger Mosby, expressed that the organization is empathetic to the feelings of the victims and asks a sincere apology to those who were harmed during their time as scouts. "We are furious that there are times when individuals take advantage of our program to harm innocent children."
It is believed that with the Chapter 11 bankruptcy process, and the fund that was proposed, it will be able to create fair compensation for victims while upholding the important mission of the Boy Scouts of America.
An open letter to victims was published online Feb. 19 and the full document will be posted on USA today as an announcement.
Local councils will not declare bankruptcy, as these are legally separate and are separate organizations. Accordingly, it is said that scout programs will continue to be active during the bankruptcy process of the Boy Scouts of America for several years to come.
The bankruptcy petition listed the Boy Scouts' assets at between $ 1 trillion and $ 10 trillion, with their liabilities at $ 500 million to $ 1 trillion.