NEW YORK – Barraged by hundreds of sex-abuse lawsuits, the Boy Scouts of America filed for bankruptcy protection Tuesday in hopes of working out a potentially mammoth victim compensation plan that will allow the hallowed, 110-year-old organization to carry on. The Chapter 11 filing in federal bankruptcy court in Wilmington, Delaware, sets in motion what could be one of the biggest, most complex bankruptcies ever seen. Scores of lawyers are seeking settlements on behalf of several thousand men who say they were molested as scouts by scoutmasters or other leaders decades ago but are only now eligible to sue because of recent changes in their states' statute-of-limitations laws. By going to bankruptcy court, the Scouts can put those lawsuits on hold for now. But ultimately they could be forced to sell off some of their vast property holdings, including campgrounds and hiking trails, to raise money for a compensation fund that could surpass a billion dollars.
Electronics retailer RadioShack has filed for bankruptcy for the second time in just over two years. The Fort Worth-based retailer filed its petition in bankruptcy court in Delaware on Wednesday. The company says it's closing about 200 stores and evaluating options on the remaining 1,300. In a statement, RadioShack President and Chief Executive Dene Rogers said that since the company's bankruptcy filing in 2015, the retailer had made progress in stabilizing operations, including reducing operating expenses by 23%. But Rogers said several issues, including a partnership with wireless carrier Sprint that proved not to be as profitable as expected, prompted the latest bankruptcy filing.
Sinclair Broadcast Group filed a countersuit Wednesday in an escalating legal battle with Tribune Media after the companies' proposed merger fell apart this month under federal scrutiny. The counterclaim maintains that Sinclair "pushed hard" to secure regulatory approval for the proposed tie-up and called Tribune's subsequent attempt to distance itself from Sinclair "self-serving." Sinclair is asking a Delaware court to find that Tribune broke the terms of the merger agreement. "Tribune, through its meritless lawsuit, is seeking to capitalize on an unfavorable and unexpected reaction from the Federal Communications Commission to capture a windfall for Tribune," Sinclair chief executive Chris Ripley said. Sinclair's filing comes weeks after Tribune sued Sinclair for breach of contract, alleging Sinclair's dealings with regulators charged with reviewing the deal were marked by "belligerent and unnecessarily protracted negotiations."
Lily Robotics, which promised an autonomous flying camera, is shutting down operations. Lily Robotics, the hyped drone startup that shutdown last month amid a consumer-protection civil suit from the San Francisco District Attorney's office, filed for Chapter 11 bankruptcy protection on Monday. In documents submitted to a U.S. district court in Delaware, Lily Robotics outlined its intentions to auction off intellectual property and refund customers, which it said was its first priority. "[Lily] wants to ensure no customers are harmed in this process," wrote Curtis Solsvig, a managing director at Goldin Associates who is named as the company's chief restructuring officer. Lily amassed more than $38 million in pre-orders from 61,450 customers in more than 80 countries, according to the filing.
Six months after accusations of sexual assault and harassment brought the downfall of Hollywood mogul Harvey Weinstein, the company he co-founded filed for bankruptcy, releasing victims from nondisclosure agreements that prevented them from speaking about the producer's alleged crimes. The Weinstein Company filed late Monday in the U.S. Bankruptcy Court in Delaware after failing to find a buyer. The company said it has reached an agreement with a Texas-based private equity firm called Lantern Capital Partners, which has agreed to buy the company's assets. Although Lantern is the first bidder in the bankruptcy process, others could make a higher bid in the court-monitored auction of the company's assets. Lantern was one of several investors that hoped to acquire the company outside of bankruptcy, but the negotiations fell through in February when New York Attorney General Eric Schneiderman filed a lawsuit claiming the entire company enabled Weinstein's crimes.