Judge Approves Boy Scouts Reorg Plan to Settle Sex Abuse Claims


A bankruptcy judge on Sept. 8 granted the Boy Scouts of America (BSA) approval of its $2.5 billion reorganization plan, which is able to allow the organization to settle tens of 1000’s of sexual abuse claims.

U.S. Bankruptcy Court Judge Laurie Silverstein’s ruling means the Boy Scouts can proceed operating and exit Chapter 11. The proposal includes changes the judge had required, including the cut of a $250 million settlement payment from The Church of Jesus Christ of Latter-day Saints.

Boy Scouts Must Change $2.7 Billion Sex Abuse Fund, Judge Rules

The settlement fund is comprised of money, property, promissory notes, payments from local BSA councils, and insurers.

But in accordance with reports, insurers are split on the settlement. Chubb’s Century Indemnity and insurers of The Hartford have agreed to contribute $800 million and $787 million, respectively, with a release of from BSA-related abuse claims. Others insurers – reportedly AIG, Liberty Mutual and Travelers – object to the settlement and can likely appeal.

Jeff Anderson, whose firm represented over 800 Boy Scout abuse survivors, said the quantity a person survivor may receive from the bankruptcy plan relies on multiple aspects regarding the abuse.

“Credit to the courageous survivors that this breakthrough in child and scouting safety has been achieved,” he said in a press release.

John Humphrey, co-chair of the official Tort Claimants’ Committee of the Boy Scouts of America said it’s “proud to place this phase of the bankruptcy case to rest.”

“The TCC has been fighting for survivors for greater than two and a half years and we’re able to move onto the subsequent phase of the method in order that the Settlement Trustee could be formally appointed and start establishing the trust,” he added.


Leave a Reply

Your email address will not be published. Required fields are marked *