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Boy Scouts Of America Sex Abuse Settlement Overview:
- Who: A deal has been reached between the Boy Scouts of America and its insurers and sex abuse claimants.
- Why: The deal will provide support to the debtor’s $2.7 billion Chapter 11 plan.
- Where: The report was filed in Delaware bankruptcy court.
The Boy Scouts of America has reached an agreement with its insurers and sex abuse claimaints that will help support the debtor’s $2.7 billion Chapter 11 plan, according to a report filed in Delaware bankruptcy court.
Mediator Timothy V.P. Gallagher filed the report, which announced a deal had been reached between the debtor, the future claimants’ representative, the official committee of tort claimants, the ad hoc committee of local scouting councils and the Coalition of Abused Scouts for Justice, Law360 reports.
The deal will be incorporated into the yet-to-be-approved Chapter 11 plan, which is up for a confirmation hearing later in the month.
The interests of more than 80,000 sexual abuse claimants are being represented by the official committee of tort claimants, which is set to recommend they vote to approve the plan, Law360 reports.
The official committee of tort claimants is also representing the interests of a good deal of the firms that are representing claimants in actions in state court.
New Deal Gives Claimants More Oversight Of Settlement Trust
Claimants will have more oversight and be able to greater scrutinize the settlement trust under the agreement, according to the filing. The trust is being funded by the Boy Scouts, charter organizations, its local council and insurers.
The Boy Scouts revealed in January that a creditor voting report showed 73% of claimants would be willing to vote in favor of the plan, Law360 reports. The number was just below the needed-threshold of 75%, which would make approving a plan simpler.
Confirmation proceedings are currently scheduled to start on Feb. 22, Law360 reports. Objections to the plan are currently outstanding from the Office of the United States Trustee, a small group of abuse claimants, and some insurers who did not participate in the settlement fund.
Last month, the Boy Scouts responded negatively to a report released by the torts claimants committee which questioned the organization’s Chapter 11 plan.
The Boy Scouts argued the torts claimants committee was acting against the best interests of the sexual abuse claimants by opposing the plan over claims it was not receiving enough support from survivors.
“The Debtors question how the collective interests of survivors in a Plan proposing a Settlement Trust with over $2.69 billion in cash and notes, plus valuable insurance rights, are served by a committee that seeks not to safeguard this value, but to eschew it,” the Boy Scouts said at the time.
What do you think of the latest Boy Scouts of America’s deal to help settle claims with abuse survivors? Let us know in the comments below or go here to seek legal recourse.
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One thought on Boy Scouts Reach Agreement With Insurers, Sex Abuse Claimants
I am a survivor of sexual abuse by my Scoutmaster in New York which occurred over the course of 7 years. I am dismayed that the Boy Scouts have contributed very little monetary compensation to the Settlement Trust (10%). BSA has billions of dollars of assets and their contribution is quite insulting to all survivors.