Boy Scouts Considering “All Available Options” Amid Financial Troubles and Lawsuits

June 12 2019| News| | By Okin Adams

It has been a rough year for the Boy Scouts of America (“BSA”). From facing an ongoing trademark infringement lawsuit filed by the Girl Scouts, to being the subject of several sexual abuse lawsuits, the organization has had to and will continue to pursue various levels of damage control. Unfortunately with legal matters like these, the financial burden can often be hard to bear—even for the most established entities.

With multiple sexual abuse settlements straining its finances, BSA filed lawsuits last year against six of its insurers, alleging that the companies improperly refused to cover some sex abuse liabilities incurred by the organization. The insurers have contended that the coverage in question is voided due to BSA allegedly failing to take effective preventative measures like warning parents of potential abuse.

It is therefore no surprise that BSA is planning to explore all the options available to it, including potentially filing for chapter 11 bankruptcy. Effie Delimarkos, the spokeswoman for BSA, has said that the organization is continuing to evaluate its financial situation. If BSA were to enter bankruptcy, it may prove to be unprecedented in its complexity, as it would involve virtually each state, making it a case of national importance.

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