Boy Scouts file for Chapter 11 bankruptcy

IRVING, Texas (NBC) – The Boy Scouts of America announced early Tuesday morning that it has filed for Chapter 11 bankruptcy.

The move largely stems from several lawsuits alleging sexual abuse allegations that caused a surge in legal costs.

The organization says the purpose of the Chapter 11 filing has two key objectives. The first objective is to set up a trust designed to compensate victims who were harmed while they were involved in the scouts and the second is to set the organization up to continue its mission.

Jim Turley, the national chair of the Boy Scouts of America, released a statement that is expected to appear as a full-page ad in Wednesday’s edition of USA Today.

In the statement, Turley apologizes for failing some children in the scouts. The statement from Turley reads in part, “I am heartbroken that you were harmed in your time in scouting, and that you carry unfathomable pain.”

The statement also encourages victims to come forward and file claims so they can receive compensation.

The statement also briefly details some of the efforts the Boy Scouts organization has taken to prevent the abuse from happening again.

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