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Boy Scout Bankruptcy Overview:
- Who: Boy Scouts of America can move forward with Chapter 11 exit plan.
- Why: A judge ruled that the organization’s revised Chapter 11 plan could go ahead after five days of contentious hearings. The plan would see the establishment of a $1.9 billion fund for Boy Scout sexual abuse survivors.
- Where: The Boy Scout bankruptcy is proceeding in Delaware court.
Creditors of the Boy Scouts of America have been given the green light to vote on whether the organization can exit bankruptcy with the creation of a $1.9 billion settlement fund for sexual abuse survivors.
Judge Laurie Selber Silverstein ruled that the Boy Scouts’ revised Chapter 11 bankruptcy plan could go ahead after five days of contentious hearings, despite tort claimants and insurance companies being opposed to the plan, Law360 reports.
Insurers said in the hearings that too many of the Boy Scout sexual abuse claims were potentially invalid and the timeline too short for litigation. Meanwhile, the tort claimants — which represent thousands of abuse victims — said it was advising a no vote, saying that the average payout of $21,000 was “unconscionably low.”
However, the Coalition of Abused Scouts for Justice — which represents other tort claimants that back the plan — said survivors had “waited patiently for justice and compensation” and if it did not come now, it might not come at all.
The plan will see the Boy Scouts pay out as much as $250 million to a trust fund that will compensate survivors, and local councils will pay out the other $600 million. Boy Scouts insurer Hartford Financial Services Group will pay $787 million and the Church of Jesus Christ of Latter-day Saints will settle for $250 million. The Boy Scout sexual abuse survivors fund would release the organizations from more 90,000 sexual abuse claims.
The Boy Scouts filed for Chapter 11 protection in February 2020 while hundreds of lawsuits were being filed against the organization over sexual abuse allegations dating back decades. Since then, claims of sexual abuse have been as high as 95,000, Law360 reports.
The settlement, known as a restructuring support agreement, is among the largest sexual abuse settlements in US history.
In July, the Boy Scouts said: “This significant step toward a global resolution benefits the entire Scouting community, as this agreement will help local councils make their contributions to the Trust without additional drain on their assets, and will allow them to move forward with the national organization toward emergence from bankruptcy.”
December 14 is the voting deadline for the plan, with January 7 listed as the last day to file objections to this part of the Boy Scouts bankruptcy proceeding. Plan confirmation hearings are set to begin on January 24.
What do you think of the Boy Scouts of America’s settlement with abuse survivors? Let us know in the comments below.
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7 thoughts on$1.9B Boy Scout Sexual Abuse Survivor Fund Up for Vote in Bankruptcy
10 years old no father and Mom entrusted her son to these men. 57 years old now disabled and Alcohol/Drug addicted with HIV. 30 years of putting pills in my body and dealing with side effects/adverse reactions along with the pain and loneliness
of never having a healthy loving relationship because of this trauma. Days before my claim was submitted, the abuser died.
THE INSURANCE COPANIES NEED TO STEP UP AND PAY A FAIR SHARE
I agree with all the replies, not enough money for the hiding of this crime!
I have had a claim in for some time. I will be 85 my birthday and my claim took on life when I was just over ten years old and had just been signed on by m dad. I remember all the details of what happened.
Every abused Scout case should be negotiated by the Scout’s Attorney directly with the the Committee. This needs to be done in a timely way BEFORE THE SCOUT suffers further mental anguish.
Let’s look at a dollar settlement from real life and compare a life ruined by the length of time, mental treatment, and shortened by death.
My Brother-in-law went through several depositions covering over 52 years of his life. He never owned a car, a house, or raised a family. Three separate Abusers who were all Scout Masters have been identified and confessed their evil.
Back to the cost of a new electric car today at $125,000. Or an average 3 bedroom home at $340,000, and the cost of raising three children to the age of college graduation $1,000,000. That conservatively amounts to $1,465,000.
Now that reality reigns in this feedback, it’s time for American Justice to put human life into the equation of the Boy Scouts of America’a debt to the Society and Country they made Oaths and Promises to protect.
I was abused as a scout in the 1970’s which has been affecting me to this day. The proposed settlement is grossly inadequate and insulting to all survivors. Hartford Insurance is liable for more than 800 million for one year alone. Hartford should be contributing well over 5 billion to the victims fund. The Boy Scouts and local councils can well afford to contribute 5 times what is proposed in the 5th Amended Plan. The organizations which sponsored the Boy Scouts are contributing no money in this plan to be granted immunity from all lawsuits. The Tort Claimants Committee is being shut out of these so called mediations between insurance companies, sponsoring organizations, Boy Scouts/local councils and the victims committee.
How can THEY sleep at night, knowing what their orginizations have done to children? They should have to pay the $1.9 billion in restitution AND be prosecuted!