Boy Scouts of America Files for Bankruptcy After Surge in Sex Abuse Lawsuits

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Boy Scouts of America Files for Bankruptcy After Surge in Sex Abuse Lawsuits
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The Boy Scouts of America, following the same playbook of USA Gymnastics and Catholic dioceses, files for bankruptcy protection from abuse lawsuits.

for Chapter 11 bankruptcy as far back as Dec. 2018, but the actual filing didn’t take place until this week.

By seeking bankruptcy protection, the outdoor and youth leadership group that claims more than 110 million participants since its inception, puts a halt to the litigation and will give the Boy Scouts a window to negotiate settlements with those who have sued, potentially rolling all claims into a single final resolution. It’s a similar approach used by USA Gymnastics and Catholic dioceses as they grappled with potential judgments against them running into the hundreds of millions of dollars.

The bankruptcy filing stemmed from a new wave of suits that grew out of an Oregon case against the Boy Scouts in the 2000s that left the nonprofit liable for $18.5 million in punitive damages, the largest verdict against the group in its history. “Paul Mones, a lawyer in that case, said he recalled musing with his co-counsel at the time that the files may just be the tip of the iceberg that could ultimately send the Boy Scouts toward bankruptcy,” the New York Times.

“The trial also triggered the public release of internal files kept for decades that revealed the identities and crimes of hundreds of known abusers,” the Oregonian. “The files informed thousands of former Scouts about the pervasiveness of sexual abuse in the organization and the extent of the group’s knowledge, he said. The records prompted hundreds of lawsuits, including several in Oregon.

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