Jessy Edwards  |  August 18, 2021

Category: Legal News

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Boy Scouts settlement, Boy Scouts sex abuse
(Photo Credit: Amy Kerkemeyer/Shutterstock)

Boy Scouts Sex Abuse Settlement Overview:

  • Who: Insurers are criticizing the $850 million sexual abuse claims settlement reached between the Boy Scouts of America and abuse survivors.
  • Why: The insurers say since the settlement doesn’t include Boy Scout groups run by faith-based organizations and other entities, it could open them up for endless litigation.
  • Where: The settlement affected Boy Scouts abuse survivors across the United States.

Insurers for Boy Scouts of America groups have questioned an $850 million settlement of sexual abuse claims, saying the settlement doesn’t include Boy Scouts groups run by faith-based, civic and educational entities, and so leaves them open for future litigation.

On Friday, an attorney for Century Indemnity Company questioned a member of the Boy Scouts’ board on the particulars of the restructuring support agreement going through Delaware bankruptcy court, which includes the million-dollar settlement, Law360 reported.

Boy Scouts of America (BSA) reached the $850 million deal with survivors of sexual abuse in early July. 

Among the largest sexual abuse settlements in US history, the deal — known as a restructuring support agreement — includes the BSA, local BSA councils, victims, and lawyers appointed to represent victims who may file claims in the future.

Per the agreement, the BSA will 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, which would release the two from 90,000 sexual abuse claims. 

The BSA filed for bankruptcy protection in February 2020 while hundreds of lawsuits were being filed against the organization over sexual abuse allegations dating back decades.

On Friday, Century Indemnity Company’s lawyer asked BSA Board Member Devang Desai if the victims might see the settlement deal as a way for the BSA and its local councils to get out of litigation, and then might “sue the charters indefinitely.”

There are some 100,000 chartered units of the Boy Scouts run by faith-based, civic, educational and other groups, Law360 reported. 

More than 95,000 claims have been filed since the bankruptcy case began, with estimated liability ranging up to $7.1 billion. 

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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One thought on Insurers Fear Endless Litigation for Boy Scout Groups Left Out of Settlement

  1. ted solomon says:

    also i need to finish my comment

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