The Boy Scouts of America (BSA) have recently changed their policies to allow gay leaders into the organization and to allow girls to join, which is now hurting the organization financially. BSA hired a legal team to explore options as the institution is facing financial hardship due to at least 140 sexual misconduct lawsuits, some dating all the way back to the 1960s. Declaring bankruptcy could stop litigation and allow negotiation. Boy Scouts CEO Michael B. Surbaugh released a statement saying, “We are working with experts to explore all options available to ensure that the local and national programming of the Boy Scouts of America continues uninterrupted.” Membership has declined from over four million boys at its peak to 2.3 million members.
The Boy Scouts of America are considering filing for bankruptcy, according to a report released Wednesday.
The Wall Street Journal states leadership of the youth organization, mired in sexual misconduct litigation, hired the law firm Sidley Austin LLP to explore a wide range of options, including petitioning for relief under Chapter 11.
On Wednesday, Boy Scouts CEO Michael B. Surbaugh released a statement in response to the Journal‘s report, saying, “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.”
“As you all know, we have always taken care of victims we believe them, we believe in fairly compensating them and we have paid for unlimited counseling, by a provider of their choice, regardless of the amount of time that has passed since an instance of abuse,” Surbaugh added.
Legal experts note filing for bankruptcy would “stave off” at least 140 lawsuits filed against the organization alleging misconduct by scoutmasters.
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