Boy Scouts deflects report of bankruptcy prep in face of sexual misconduct litigation

The American Scouts organization has reported that the youth group may apply for bankruptcy protection against sexual misconduct claims, saying "there are no imminent actions or decisions" expected.

The Wall Street Journal reported on Wednesday that the youth organization was considering bankruptcy in the face of diminished membership and increased legal costs. The newspaper said the hiring of law firm Sidley Austen LLP was also used to explore options.

Michael P. Sorbao, chief executive of Scout, issued a statement "in anticipation of news reports that expect the financial position of the BSA." The Group was working with unnamed experts to explore all possible options aimed at stabilizing and ensuring the continued programming of the Group without interruption.

"We have a social and moral responsibility to make fair compensation for the victims who mistreated them during their time in exploration," he said. "We also have an obligation to carry out our mission to serve young people, families and communities."

Surbaugh said the group is trying to focus on maintaining the safety of young people to guide them and prepare them for their future through personal development and leadership training based on good values.

"To do this forever, we are working with a select group of experts to explore all the options available," he said. "We have a social and moral responsibility to compensate the victims who have faced the tragedy of abuse during their time in exploration."

Surbaugh apologized for all the people who were hurt during their time in the poll. He said one of the incidents of child abuse was very large, adding that scouts had taken "proactive steps" to help and support all victims in order to heal and prevent abuse in the future.

He said the group had never allowed sexual abusers to work with young people.

"As you all know, we have always been careful to take care of the victims until recovery," he said. "We believe in them, and believe that we will try to compensate them to some extent, and we have paid for unlimited consultation, by a provider of their choice, no matter how much time has passed since abuse."

Seeking to reduce sexual litigation through bankruptcy is not a new approach. The United States provided gymnastics to protect against bankruptcy last week, saying filing would help resolve litigation resulting from the misconduct of doctor Larry Nassar.

The Roman Catholic diocese of Santa Fe went bankrupt earlier this month after Archbishop John Wester said the diocese had faced many active victims of sexual assault, which exceeded 35 claims. According to the website of Bishopaccountablility.org, 19 dioceses have filed for bankruptcy since the collapse of the abuse cases began more than two decades ago.

The Scouting program - a program for children between the ages of 11 and 17 - is trying to rename itself. The group announced in May that it would change its name to BSA Scouts in February.

The parent organization will remain the American Scout, and the Scouts - its program that serves children from kindergarten through fifth grade - will maintain its title. The organization already recognizes girls in the scout, and the Saudi Scout Association is planning scouts to accept girls next year.