Joanna Szabo  |  October 9, 2020

Category: Legal News

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What is the BSA bankruptcy?

The committee representing child sex abuse survivors in the BSA bankruptcy has asked the judge to authorize subpoenas in the investigation into the organization and its local councils, which it alleges are withholding Boy Scouts abuse information important to the case.

Attorneys representing the tort claimants’ committee (TCC), said that the subpoenas are intended to gather essential information from the organization, including financial assets, troop and camp rosters, and insurance policies, which would help make progress toward a global resolution of the thousands of claims against the organization that led to the BSA bankruptcy in the first place.

“Without the facts in hand, the parties’ mediation may stall,” the court filing notes.

The committee seeks to subpoena a number of specific groups: the national BSA itself, members of an ad hoc committee of local councils, as well as 47 specifically named councils (eight of which are members of the ad hoc committee).

These subpoenas are necessary to get access to information that has been kept back from them, the committee says.

“The examinees have slow-walked information on the local councils’ restricted assets and stonewalled on the roster requests, and the TCC has no confidence that all of the insurance policies have been produced,” said the attorneys in the court filing.

What is the BSA bankruptcy?The BSA released a statement on Sept. 30, the day after the court filing, saying that all of the 253 local councils within the BSA organization have agreed to share information with the tort claimants’ committee.

“This clearly demonstrates that the BSA and the local councils are committed to working through a productive, mediated process that provides equitable compensation or survivors of past abuse in Scouting and ensures that the mission of Scouting can continue for America’s youth,” the organization said.

The BSA bankruptcy has been an ongoing process since February, after the Texas-based organization was hit with hundreds of individual lawsuits—and thousands of victims—over alleged childhood sexual abuse within its ranks. The influx of Boy Scouts litigation was prompted by recent changes to certain states’ statute of limitations regarding child sex abuse. Recent changes to these statutes were made in New York, Arizona, New Jersey, and California, making it easier for survivors of abuse that took place years or decades ago to file litigation in their adulthood.

The BSA bankruptcy allowed for the creation of a compensation fund, intended to both compensate victims who were molested by their scout masters or other BSA leaders, years or even decades ago, as well as allow the 110-year-old organization a path to survive the litigation and compensation process. While the BSA bankruptcy filing allows victims to seek compensation through the newly established fund, it also puts the lawsuits on hold.

The BSA bankruptcy filing is one of the “biggest, most complex bankruptcies ever seen,” PBS reports, given that there are thousands of men who have leveled claims against the organization.

Because there are so many victims who have come forward, the compensation fund is going to need to be considerable—indeed, it may surpass a billion dollars, according to PBS. In order to cover that amount, the organization may have to sell off some of their holdings. The Boy Scouts of America has a great deal of property all across the country, including campgrounds and hiking trails. The company’s assets are between $1 billion and $10 billion, and liabilities between $500 million and $1 billion, according to the BSA bankruptcy petition.

Filing a Boy Scouts Child Sex Abuse Lawsuit

The effects of childhood sexual abuse can last for years or even a lifetime. If you or someone you love has suffered from child sexual assault by someone within the Boy Scouts of America organization, even if that abuse took place years or decades ago, you may be able to file a Boy Scouts lawsuit and pursue compensation, as well as hold the organization accountable for actions and inactions that allowed this abuse to take place.

Of course, filing a lawsuit cannot take away the pain and suffering caused by abuse, but it can at least help to provide some compensation, as well as hold the organization responsible for its actions and inactions that allowed the abuse to take place.

Filing a lawsuit can be a daunting prospect, so Top Class Actions has laid the groundwork for you by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Boy Scouts of America Sexual Abuse Class Action Lawsuit Investigation

If you or someone you love suffered from sexual abuse in the Boy Scouts of America, you may qualify to join this Boy Scout sexual abuse class action lawsuit investigation.

See if you qualify by filling out the free form on this page.

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This article is not legal advice. It is presented
for informational purposes only.

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