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mashmaster

Chapter 11 announced

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10 minutes ago, T2Eagle said:

and that the sum total of all those legitimate cases was and is greater than the liquid assets BSA would have available to pay them and still continue normal operations.

There's also two secondary aspect here (and they may not be totally "secondary")

1) This ends all claims at once. Even if every case/claim was legitimate, it would take decades of litigation. Even if only 70% or 60% or 50% were, it would be a quicker and "cleaner" solution to simply find the claims that at least meet the minimal requirements for filing a claim, figure out the assets, and divide. Otherwise, BSA gets "abuse lawsuit trial" in headlines for another 10+ years.

2) The insurance companies balked. This gets skipped over (a lot) but the other major reason BSA had to file was because several insurers refused to honor the policies claiming that either a) the policies didn't cover what BSA was accused of or b) the policies were void due to BSA's actions.

Quote

 

According to Bloomberg, the BSA is fighting hundreds of claims and a rash of litigation spurred on by the revelation in 2012 that the organization had kept records of thousands of sexual abuse and misconduct allegations. The BSA has described the records as the “ineligible volunteer files” and said they were part of an effort to protect children by spotlighting people who shouldn’t have been allowed to work with them in the first place.

The Hartford Accident and Indemnity Co. and First State Insurance Co. in Texas have both turned their back on the BSA, arguing that the “ineligible volunteer files” show the organization hasn’t done enough to protect children against sexual abuse and misconduct, and hasn’t done enough to warn parents of the risks.

Both insurers are arguing in court that they shouldn’t have to pay claims related to abuse that the BSA could have reasonably prevented. The BSA and several councils sued both insurers for $13.5 million in June. In a separate legal battle, insurers are refusing to cover sex-abuse settlements and legal defense fees for the BSA, arguing that the events were not accidents and could have been prevented.

 

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