LEXINGTON, KY. (WTVQ) – The Boy Scouts of America has filed for bankruptcy.
The youth organization filed a court document in Delaware bankruptcy court Tuesday.
The announcement comes as the organization faces hundreds of sexual abuse lawsuits.
According to the filing, the boy scouts have $50 thousand or less in assets but liabilities between $100 million and $500 million, all while the organization faces hundreds of sexual abuse lawsuits.
The lawsuits report repeated fondling, exposure to pornography and sexual assault.
Court testimony showed that the organization believed more than 7,800 of its former leaders were involved in sexually abusing more than 12 thousand children over the course of 72 years.
Now that the boy scouts have filed bankruptcy the lawsuits have been suspended.
The Boy Scouts of America tweeted out Tuesday morning saying, “The national organization of the BSA filed for chapter 11 bankruptcy in order to equitably compensate victims who were harmed during their time in scouting and ensure scouting’s future. Scouting continues and local councils have not filed for bankruptcy.”
This could be one of the biggest, most complex bankruptcies ever seen as lawyers seek settlements for several thousand men who say they were victims of molestation as boys by scout leaders.