The world's largest scouting organization has now filed for bankruptcy amidst a flood of lawsuits over alleged child abuse. The Boy Scouts Of America announced on Tuesday that it has filed for Chapter 11 bankruptcy, indicating a likely end the century-old institution.
The filing was somewhat unexpected given the organization's long-standing reputation and its value-driven program aimed at the American youth. However, years of continued sexual abuse accusations amongst its ranks, declining membership and the controversy surrounding its acceptance of female members has apparently taken its toll.
The Irving-based organization mentioned in a statement that it apologizes to all those who were harmed and that it is calling on all victims to come forward. Over the past decades, the organization has been the center of hundreds of claims by its members across the country.
The flood of suits intensified after several states removed legal hurdles that barred any new claim over old or initially unreported child abuse allegations. The removal of the hurdles followed the rise of the #metoo movement in the United States, which has swayed public opinion in support of the victims.
In the wake of the growing movement, thousands of lawsuits had been filed against other organizations and individuals, including church leaders, hospitals, doctors, teachers, and schools.
One of the lawyers representing victims of the alleged abuses when they were members of the Boy Scouts of America stated that bankruptcy filing was likely a direct result of the organization's concealment of decades of abuse by their adult leaders.
In response to the slew of new cases against it, the organization stated that it will strive to live up to its social and moral responsibilities by providing support to victims. It added that it will continue to carry out its mission to serve the country's youth through its programs.
As part of the bankruptcy filing, the organization has been allowed to consolidate all lawsuits against it into one court. This would allow the organization to negotiate a possible settlement with the plaintiffs under a single deal. A single settlement would cost significantly less when compared to fighting each case in court individually.
The cases against the organization are expected to be complicated given the challenges in determining the value of its assets. During its most recent annual report, the national organization stated that it had assets of around $1.5 billion. However, local councils do have their own assets separate from the national council.
