Boy Scouts Files Bankruptcy Amid Sexual Abuse Lawsuits

The Boy Scouts of America (BSA), the nation’s largest non-profit youth organization, is facing thousands of sexual abuse lawsuits. Litigation has been filed by men who claim they were sexually molested by scout leaders and that the organization turned a blind eye to systemic abuse for years. Many of the cases have been brought by survivors who live in states where the statutes of limitation have been lengthened. This allows victims to sue perpetrators in civil court.

Testimony from court proceedings last year indicates that 7,800 former Boy Scout leaders sexually abused 12,000 children over the past seven decades. And according to financial statements disclosed by BSA, the organization has spent $150 million on settlements and litigation costs to resolve sexual abuse lawsuits between 2017 and 2019.

Boy Scouts Files for Chapter 11 Bankruptcy

In a move that has been highly scrutinized, the Boy Scouts of America filed for Chapter 11 bankruptcy last February. Bankruptcy law, in many cases, enables organizations to sidestep the payment of all debts. Further, given the scope of sexual abuse litigation against BSA, it is clear that they are attempting to protect its assets. However, the bankruptcy reorganization plan has spurred the creation of a Victims Compensation Trust that will make payments to sexual abuse victims from funds paid by the BSA and their insurers.

In a public statement, the Boy Scouts said the organization “cares deeply about all victims of child abuse and sincerely apologizes to anyone who was harmed during their time in Scouting….The Boy Scouts of America believes our organization has a social and moral responsibility to equitably compensate all victims who were harmed during their time in Scouting. We also have a duty to carry out our mission for years to come.”

November 16^th deadline to file a Boy Scout Abuse Lawsuit

Is the bankruptcy filing a negative development for sexual abuse victims who still seek justice against the Boy Scouts of America? Not necessarily. With the Victims Compensation Trust, people who have filed claims will be able to seek compensation from assets that are allocated just for this purpose– but the clock is ticking. The Boy Scouts have established a clear timeline in which victims must come forward. To be eligible for money from the Victims Compensation Trust, claims must be filed no later than November 16, 2020.

Advocates for sexual abuse survivors argue that the bankruptcy process can be detrimental to those who miss the filing deadline, as they have a lower chance of obtaining compensation. Another tradeoff with this Trust is that there is less of a chance for individual lawsuits to net high damage awards during a trial. Earlier molestation cases against the BSA have resulted in large, multi-million-dollar payouts.

The Victims Compensation Trust will purportedly ensure that compensation is equitably awarded to sexual abuse victims. Resolving claims this way also removes the publicity of high-profile trials. Victims– many of whom don’t want this traumatic period of their lives to be made public– can have peace of mind that their names and stories will remain confidential.

Time is limited for seeking restitution

Much of the pending litigation against BSA is based on sexual abuse that occurred 25-30 years ago– before the organization mandated criminal background checks and other protocols for volunteers and staff.

Since 2006, Showard Law Firm has provided compassionate, results-focused support for clients. If you suffered child sexual abuse in the Boy Scouts, call today to arrange a free and confidential consultation about your rights.