In the face of hundreds of sexual abuse lawsuits, the Boy Scouts Of America filed for Chapter 11 protection on Tuesday.
According to federal court papers, the 110-year-old youth organization has less than $50,000 in assets while listed liabilities of between $100 million and $500 million.
Claiming bankruptcy allows the BSA to suspend the lawsuits from alleged sexual abuse victims across the country while it restructures its debt.
In addition, a Victims Compensation Trust will be set up to “provide equitable compensation to all victims while maintaining the BSA’s important mission,” says CEO Roger Mosby.
