The Boy Scouts of America (BSA) has filed for Chapter 11 bankruptcy protection in the wake of hundreds of child sex abuse allegations, including a lawsuit involving nearly 800 plaintiffs. The move would mean a reorganization of the group's debts and assets.
The tactic is similar to the one used by the Catholic Church when dealing with the fallout of its clergy sexual abuse scandal. The filing, which was made in Delaware, is directly related to thousands of pending sexual assault lawsuits against the BSA.
Roger Mosby, CEO and president of the BSA, said:
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.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.
In the bankruptcy filing, BSA listed its assets between $1 billion and $10 billion and listed its total liabilities between $500 million and $1 billion.
Catch up on the Latest Videos on TheStreet!
- Cure for Coronavirus: Are We There Yet?
- Jim Cramer on Nvidia's Earnings
- Jim Cramer Puts Tom Brady, Ryan Tannehill and Philip Rivers Against Stocks
- 5 Stocks (And Some Extras) to Add to Your Portfolio
- TheStreet Explains: How to Find a Good Savings Account
- Retirement Daily: What Social Security Customer Service Reps Can and Can't Tell You
- Free Webinar: Webinar - Expert Advice on FX/Metals Trading by CME Group