Boy Scouts of America could file for bankruptcy amid sexual misconduct lawsuits
Boy Scouts of America memberships are also declining
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Your support makes all the difference.The Boy Scouts of America is reportedly looking into filing for bankruptcy as it faces mounting costs from a number of sexual misconduct lawsuits.
The youth scouting organisation said in a statement published on Wednesday said “in anticipation of news reports that will speculate about the BSA’s financial position” no immediate decisions are expected.
Boy Scouts has already hired a law firm, Sidley Austin LLP, to assist with potential chapter 11 bankruptcy filings, according to the Wall Street Journal. The bankruptcy filings could halt the numerous lawsuits—many of which allege employee sexual misconduct—crippling the organisation’s finances.
“We are working with experts to explore all options available to ensure that the local and national programming of the Boy Scout of America continues uninterrupted,” Michael Surbaugh, chief scout executive, said in the statement.
Mr Surbaugh mentioned how legal costs related to the sexual misconduct lawsuits has placed financial pressure on the BSA.
“We believe (victims), we believe in fairly compensating them and we have paid for unlimited counselling, by a provider of their choice, regardless of the amount of time that has passed since an instance of abuse,” the statement read.
“We have an important duty, and an incredible opportunity, to focus as an organization on keeping children safe, supported and protected, and preparing youth for their futures through our nation’s foremost program of character development and values-based leadership training,” Mr Surbaugh added.
One of BSA’s major court defeats occurred in 2010 and included an $18.5 million payout to a Boy Scout who came forward alleging incidents of sexual abuse dating back to the 1980s.
Earlier this year, BSA announced its plans, starting February 2019, to remove “boy” from their official name to increase membership to its organisation. “We wanted to land on something that evokes the past but also conveys the inclusive nature of the program going forward,” Surbaugh said at the time. “We’re trying to find the right way to say we’re here for both young men and young women.”
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