Copying the RAW Paste data worked for me:
1. Rename existing group.php file located here as group.php.old:
/wp-content/plugins/bbpress/includes/extend/buddypress
2. Open notepad and paste the code located here: http://pastebin.com/nfYvigz4
3. Save the file and upload it to the directory above.
I’m now able to create groups. Hopefully things stay inline during the next BP or bpPress update.