"It's The Biggest Sex-Abuse Bankruptcy Of All Time" - Facing 100s Of Lawsuits, Boy Scouts Of America Goes Chapter 11
When we last checked in on the Boy Scouts of America, the organization was reeling from a deluge of sex-abuse lawsuits that was soaking up all of its financial resources and attention, raising the possibility of a bankruptcy filing to help the organization escape the hefty penalties and allow the 110-year-old nonprofit to survive.
This strategy should be familiar to Zero Hedge readers by now: it's the same playbook used by opioid maker Purdue Pharma and troubled wildfire-starting California utility PG&E.
And on Tuesday, the organization finally followed through: According to Fox News, the BSA filed for Chapter 11 bankruptcy protection early Tuesday following decades of sex abuse claims by troop leaders.
The petition was filed in Delaware bankruptcy court, and will halt the hundreds of lawsuits that the organization is facing after several states passed laws allowing abuse lawsuits based on allegations stretching back to the 1960s to proceed against the organization.
In response to the bankruptcy filing, an attorney who is representing some 300 alleged victims said that the bankruptcy would be "bigger in scale than any other sex abuse bankruptcy."
Comments
Post a Comment