Date: February 27, 2004
Contact: David Liberman
Phone: +1 (310) 418-6464 or (310) 277-9288
Los Angeles ---Eleven temples and organizations adhering to the teachings and beliefs of the Krishna Consciousness religion, ISKCON or the Hare Krishna movement, filed a Chapter 11 Reorganization Plan today in the U.S. Bankruptcy Court which will oversee the distribution of financial compensation to over 500 tort claima nts
The Chapter 11 cases, originally filed in 2002, were in response to a lawsuit alleging child abuse in Hare Krishna boarding schools located principally in the U.S. and India during the 1970's and 1980's.
The Krishna reorganization plan provides for up to $15 million to be provided to ISKCON creditors, the majority of whom are former ISKCON students.
The Reorganization Plan is unique in two ways: First, it provides compensation for over 400 youth who never joined the suit against ISKCON temples, and second, a significant portion of the Plan will be funded by voluntary contributions and settlement funds from individuals, independent temples and other organizations—and not just by the Debtor organizations who filed for bankruptcy protection.
“This Plan is unusual and far-reaching,” said David Liberman, ISKCON attorney. “We are providing assistance for any Krishna youth who may have been abused and who filed a claim with us—whether or not they sued—and we are increasing the available funds with voluntary contributions from independent temples around the world that want to help our youth.”
Krishna temples in Los Angeles San Diego and West Virginia are among the organizations that filed for Chapter 11 protection. The filing resulted from a lawsuit, originally Federal Court, on behalf of ninety former ISKCON students. That case was dismissed from Federal Court in September, 2001, but a similar case was filed in Texas State Court soon afterwards.
The reorganization plan includes $2 million in startup capital for a nonprofit “Social Development Program,” a youth support organization which will offer free membership to all present and former ISKCON students. That organization will deliver support and assistance, including educational opportunities, social development assistance, career development opportunities, and financial grants to Krishna youth.
“Abuse of even a single child is a tragedy,” said Anuttama Dasa, ISKCON spokesperson. “ISKCON is a relatively small community of temples, but we are trying to do all we can to help our children. Our goal is to assist every young person who may have been abused,” he said.
The Reorganization Plan provides a detailed legal and financial roadmap as to the classification of various claims, the size of the fund, third party contributions, and other matters. The Claimants must yet approve the Plan, and an independent judicial determination assessing the legality, adequacy and fairness of the Plan will be made by the Bankruptcy Court within the next few months.
The International Society for Krishna Consciousness (ISKCON), a Vaishnava, or monotheistic tradition within Hindu culture, was brought to the west in 1965 by His Divine Grace A. C. Bhaktivedanta Swami Prabhupada, a respected scholar and religious leader. ISKCON teaches bhakti-yoga, or devotion to God, through simple living, vegetarianism and the chanting of God's names.
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