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Boy Scouts File for Bankruptcy Amidst Wave of Sexual Abuse Charges

In the face of approximately 300 sexual abuse lawsuits from former Boy Scouts, the Boy Scouts of America has filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. The Boy Scouts of America is the nation’s largest scouting organization and one of the largest youth organizations. Because Chapter 11 allows an organization to continue operations, scouting programs are expected to proceed at this time.

Officials with the organization said in a statement on Tuesday, February 19, “Our plan is to use this Chapter 11 process to create a Trust that would provide equitable compensation to these individuals.”

The national landscape has shifted significantly in recent years as large, influential organizations like the Catholic Church and USA Gymnastics have become the subject of sexual abuse scandals. One of the most important ways laws have changed has been the extension of the statute of limitations. Many states, including New Jersey and Pennsylvania, have chosen to grant sexual abuse victims longer timeframes to seek damages in sexual abuse and assault cases.

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About this Author

MIchael G Donahue, Product Liability, personal injury litigator, Stark Law Firm
Shareholder

Michael G. Donahue, Esq. is a Shareholder of the law firm Stark & Stark, P.C.  Mr. Donahue is certified by the Supreme Court of New Jersey as a Civil Trial Attorney. He concentrates his practice in product liability and other complex personal injury litigation. Mr. Donahue publishes and lectures frequently regarding tort liability issues as well trial and settlement techniques. 

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