Boy Scouts’ $850M Sexual Assault Settlement OK’d by Judge

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Boy Scouts Sex Abuse Settlement Overview:

• Who: The Boy Scouts of America is one step closer to paying out $850 million to former scouts who suffered sexual abuse during their time in the organization.
• Why: A Delaware bankruptcy judge has given approval to move forward with the deal between the Boy Scouts and sex abuse survivors, which calls for the Boy Scots organization to pay out as much as $250 million to a trust fund that will compensate survivors. Local councils will pay out the other $600 million, which would release the two from 90,000 sexual abuse claims.
• Where: The settlement affects Boy Scouts abuse survivors from across the United States.

An $850 million agreement aimed at resolving tens of thousands of sexual abuse claims made against the Boy Scouts of America (BSA) has been given approval to move ahead by a Delaware bankruptcy judge.

On Thursday, Judge Laurie Selber Silverstein ruled that the organization’s Chapter 11 plan could go ahead, Law360 reports. 

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

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. 

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.

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.

Insurers for BSA 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.

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

More than 95,000 claims have been filed since the bankruptcy case began, with estimated liability ranging from $2.4 billion up to $7.1 billion. 

On Thursday, the BSA said it would follow up with an appropriate recommendation for the hearing, Law360 reported.

“We appreciate the speed and diligence with which the court evaluated the facts of the case and rendered its decision, and we will soon make the appropriate filing with the court regarding the timing of the hearing on the disclosure statement,” the organization said. 

There are still many issues in the deal that need to be ironed out. The settlement is also opposed by insurers, who say representatives of the abuse claimants had too much say in the negotiations, Reuters reports.

The insurers, which include Century Indemnity Company and Hartford Financial Services Group, said they believed some claims may be fraudulent, so they didn’t want to pay for them.

What do you think of this settlement? Let us know in the comments!

Read About More Class Action Lawsuits & Class Action Settlements:

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• Top Class Actions’ Sexual Misconduct and Abuse Resource Guide
• Edna Mahan Correctional Facility $8M Class Action Settlement