Boy Scouts of America is facing hundreds, if not thousands, of sexual abuse cases thanks to changes in the statute of limitations.
Boy Scouts of America filed for bankruptcy protection early today amid declining membership and a drumbeat of child sexual abuse allegations that have illuminated the depth of the problem within the organization and Scouts’ failure to get a handle on it.
In a statement, the organization said: "The BSA cares deeply about all victims of abuse and sincerely apologizes to anyone who was harmed during their time in Scouting." Story continuesReports of a potential bankruptcy first emerged at the end of 2018, with rumors that the nonprofit youth organization would follow in the footsteps of the Catholic Church, which has faced similar claims of abuse. But unlike the Catholic bankruptcy cases, in which more than 20 individual dioceses have filed for protection, the Boy Scouts’ case will play out on a national level.
“The problem with Boy Scouts is they're caught in a vice grip of, on one hand, having insurance companies not paying on these claims that Boy Scouts have already settled, and second having dwindling economic resources on account of paying out money for sexual abuse settlements,” said attorney Paul Mones, who has tried dozens of high-profile cases against Boy Scouts.
Boy Scouts currently faces hundreds, if not thousands, of abuse lawsuits. New allegations poured in as efforts to extend the civil statute of limitations for survivors of child sexual abuse gained momentum in recent years. The Scouts, in its statement issued earlier today, flipped that, saying, a settlement fund"is the best means of compensating victims in a way that is equitable and protects their identities."More: Boy Scouts lawsuit: Parents trust teachers and counselors, but should they?
Typically, abuse survivors will be represented on a required committee of unsecured creditors or on a separate committee established to represent their interests, she said. The committee will try to negotiate a settlement in which the nonprofit sets aside a pot of money to settle claims. From the outset, Boy Scouts has operated on a decentralized structure, much like the Catholic Church, with the National Council serving as more advisory body and much of the day-to-day operations, including some fundraising, happening at the local level.
Such properties and cultural relics have added to the national organization’s holdings, which Boy Scouts valued at $1.4 billion in 2018 tax documents. In bankruptcy, Boy Scouts may be forced to sell off those assets to pay creditors – or may do so voluntarily. But much of Boy Scout property actually is owned by regional councils across the country rather than the national council, which claimed just $240 million in land assets in its 2018 tax filings. By contrast, the USA TODAY Network found $101 million in local councils' property in New York alone.
How bankruptcy will affect abuse survivors The period established for victims to file claims during a bankruptcy allows the organization to sidestep windows opened by states in response to sex abuse scandals. In January 2018, Nassar was convicted and sentenced to up to 175 years in prison. While Nassar remains locked up, USAG continues to deal with fallout from abuse claims from hundreds of athletes.
In April 2019, Little filed a federal lawsuit to protect potentially thousands of survivors who might not have known about a deadline for filing claims because of the USAG bankruptcy. Little said he’s trying to get the bankruptcy case thrown out. Krestschmer is among nearly 2,000 former Scouts represented by attorneys with Abused in Scouting. The group launched abusedinscouting.com as well as television and Google ads last spring. “In my view, I think Boy Scouts should be shut down totally,” Kretschmer said. “I would never put one of my children in scouting today.”
According to a 1993 CBS investigation, Boy Scouts had been sued more than 50 times since 1981, paying more than $15 million in damages. Yet, when national Scout representatives were asked if they required all troops to perform background checks on volunteers, or whether video training for volunteers to help spot potential abuse was mandatory, a Boy Scout representative said no.
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