Boy Scouts of America faces 300 lawsuits
The scouting organization, Boy Scouts of America, is filing for bankruptcy due to their financial instability as they face 300 lawsuits from former members claiming they were sexually assaulted while scouts. With more high profile sex abuse cases including USA Gymnastics and the Catholic Church, more states are changing their laws to allow a longer statute of limitations, allowing victims more time to seek criminal justice against their perpetrators.
Allowing for a longer statute of limitations has also lead to a higher rate in lawsuits from cases that were previously prevented from going to court due to the previous time limitations. An attorney representing many of the men coming forward with allegations against Boy Scouts of America, Paul Mones says, “For years, organizations like the Boy Scouts counted on these laws protecting 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.”
Mones makes a point that the potential liability of the Boy Scouts of America can be big, winning a single case in Portland in 2010 in which the judgment against the organization was $20 million. Boy Scouts relied on the insurance they’ve had for years that covers claims of sexual abuse. The insurance companies in recent years have been withdrawing coverage saying that the Boy Scouts knew about the abuse but didn’t disclaim the insurance companies.
Boy Scouts of America Files for Bankruptcy, Encourages Victims of Sexual Abuse to File Claims https://t.co/LH7KYuKR3d pic.twitter.com/5tKmIwmz4G
— Law & Crime (@lawcrimenews) February 18, 2020
This results in the Boy Scouts being responsible to fund any settlements and litigation themselves. According to the most recent tax filing by the Boy Scouts of America, they have a total revenue of more than $285 million and in 2018 reported they own $1.4 billion in assets. The Wall Street Journal reported that as of last month local Boy Scout affiliated nonprofits and councils hold $3.3 billion in assets.
Since December 2018 the organization has been exploring the possibility of bankruptcy and has indicated hiring a law firm for possibly filing for Chapter 11 bankruptcy. The Boy Scouts hope is that they can protect their assets of local councils through filing for bankruptcy, similar to the case of the Catholic Chuch coming forward with claims to protect their parishes and properties.
Attorney Mones says this case can serve as a warning for any organization that hasn’t faced abuse claims, saying that they should be proactive in solving the issue instead of being proactive trying to cover it up. The official Boy Scouts of America YouTube channel features a video explaining why the organization is filing for bankruptcy claiming it’s for the financial restructuring of their organization that won’t affect local groups. They also go onto say that scouting activities will continue stating that they will benefit their non-profit programs by ensuring long-term financial stability.
Who Is The Most Popular President In American History?
Starbucks Open Their Biggest Location In Chicago
-
Shareholders have accused Musk of enriching himself to the company’s detriment. In the midst of his ongoing revamp of...
-
Without pandemic-era loan accommodation, borrowers are falling behind. During the height of the COVID-19 pandemic, numerous aid and accommodation...
-
As Twitter changes hands, policies change as well. As of last Friday, social platform Twitter is officially the property...
-
Remote workers have brought in a tidy sum for several major carriers. While the COVID-19 pandemic has reached a...
-
The CPI rose another 0.4% in September. For the past several months, the United States Federal Reserve has been...
-
Musk appears to be backing down from his legal threats. For the last several months, Tesla CEO Elon Musk...
-
Amazon is looking to start the holiday shopping season even earlier this year. Typically, online retail giant Amazon holds...
-
Home Depot still maintains a healthy customer base despite economic concerns. Ongoing concerns of inflation have done a number...
-
A railway strike would severely impact the US economy. This week, representatives of the National Railway Labor Conference and...
-
Customers have been tipping less generously as pandemic restrictions relax. At the height of the COVID-19 pandemic, when many...
-
After years of exclusivity, Peloton is finally allowing third-party sales. Since it first launched as a company, exercise device...
-
Uber was first on the chopping block as SoftBank recoups losses. Recently, Japanese conglomerate SoftBank suffered a major loss...