Boy Scouts of America (BSA) is facing hundreds of lawsuits filed by people who claim they were sexually abused as Boy Scouts. BSA is urging victims to come forward as the organization files for Chapter 11 bankruptcy.

The lawsuits have put a strain on the BSA’s financial situation, causing them to resort to filing for Chapter 11 bankruptcy, a Victim’s Compensation Trust, in Delaware on Feb. 18. The BSA has been fined nearly $20 million in just one case, revealing the large liability of the organization.

Michael Pfau, a lawyer representing hundreds of victims suing the BSA in 34 states, reveals that the goal of the proposed trust from the BSA is for them to “emerge with the settlement of all claims and then release from the claimants, which means, in exchange for some compensation, the claimants will not sue the Boy Scouts in the future,” according to the New York Daily News.

If the Chapter 11 plan is rejected, the BSA will face a crisis. They may transform the case into a Chapter 7 “liquidation” bankruptcy, which requires the BSA to distribute their assets owed to the victims for damages. 

The Boy Scouts has stated that “local councils, which provide programming, financial, facility, and administrative support to Scouting units in their communities, have not filed for bankruptcy,” as reported by NPR. “They are legally separate, distinct and financially independent from the national organization.”

The organization may hope that this bankruptcy filing will shield the assets of its local councils. The organization’s assets in 2018 totaled $1.4 billion, with its most recent tax filing showing revenue of more than $285 million. Currently, local Boy Scout councils separately hold $3.3 billion in assets.

BSA National Chair Jum Turley has published a letter of apology to the victims of abuse.

“I am outraged that individuals took advantage of our programs to commit these heinous acts,” explained the exasperated Turley, according to NPR. “On behalf of myself and the entire Scouting community: I am sorry. I am devastated that there were times in the past when we failed the very children we were supposed to protect.”

Other high-profile sexual abuse scandals in well-known organizations ranging from the Catholic Church to USA Gymnastics have prompted some states to change their laws to allow more time for sexual abuse victims to file lawsuits.

Paul Mones, an attorney based in Los Angeles who represents many victims filing lawsuits against the BSA, explained that organizations such as the BSA had previously counted on the law to protect them. “Now those laws are not there, and the Boy Scouts have fallen under their own weight of these abuse allegations and the potential cases that will be filed.”

Amidst the turmoil, the BSA has appointed a new president, who pledges to “move the organization forward.” They have also decided to partner with 1in6, a main organization for male survivors of sexual abuse, according to CNN.

Mones speculated that the BSA’s case can serve as a caution to any organization that hasn’t dealt with abuse reports properly. “If the largest youth organization by far in the United States can be crippled under the weight of doing nothing about their sexual abuse allegations and covering the problem up, I think it is a warning shot across the bow to all churches and youth organizations and schools that have this problem and don’t act proactively to resolve it,” Mones explained.

Photo has been removed due to copyright infringement.