Sex Abuse Claims Drive Boy Scouts of America to Bankruptcy

  • Reorganization plan includes a trust to compensate victims
  • Scouts cite failure of volunteers and employees to take action

Photographer: George Frey/Getty Images

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The Boy Scouts of America sought bankruptcy protection to cope with a rising tide of claims tied to sexual abuse of children in its ranks.

The group filed in Delaware early Tuesday under Chapter 11 of the U.S. bankruptcy code, which allows the organization to keep operating while it works out a plan to pay its debts and design a recovery plan.