Boy Scouts File Bankruptcy Amid Sex Crimes Lawsuits

The Boy Scouts of America filed for Chapter 11 bankruptcy protection on Tuesday as the organization faces 275 abuse lawsuits and potentially another 1,400 cases to come.

According to documents detailing sexual abuse accusations and the organization’s response there was at least one accusation against a Pasadena scoutmaster in 1987.

In that case, a 27-year old former school teacher was accused of pulling a boy’s pants and underwear down. The documents also state he was accused of improperly touching boys.

It is not known if any of the potential victims have filed lawsuits.

Details of the incident were forwarded to sheriff’s deputies and the accused scoutmaster was suspended from the organization.

According to documents obtained by Pasadena Now it was later learned the accused had been accused of improper actions while teaching in the Los Angeles Unified School District. Pasadena Now is not publishing the man’s name because it cannot be verified if he was arrested or charged with a crime.

So far, the Boy Scouts have paid out more than $150 million in settlements since 2017. The Boy Scouts hope to contain the financial damage of the abuse scandal and emerge as a more sustainable organization.

Since 2002, about 17 states have adopted laws allowing sexual abuse victims to pursue lawsuits that would have been outside the statute of limitations. Those laws have opened the door for many cases to be brought against the Boy Scouts.

The group claimed on Tuesday that bankruptcy was “the only viable option” for the Boy Scouts to consolidate numerous cases in one proceeding, pay its victims and emerge as a sustainable entity.

In bankruptcy, people who have won lawsuits against the debtor are typically paid less than what they are owed.

The exact amount paid to the victims will be determined based on the organization’s total assets, the amount of money the nonprofit owes to other entities and consideration of how payouts will affect the organization’s survival. If the boy scouts are dissolved its assets could be sold to pay the victims. The situation could be litigated for years.

“Scouting programs will continue throughout this process and for many years to come,” the Boy Scouts said in a statement.” Local councils are not filing for bankruptcy because they are legally separate and distinct organizations.”