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Boy Scouts Sex-Abuse Overview:
- Who: Boy Scouts of America insurer Chubb Ltd. has agreed to pay $800 million in a deal to fund compensation for victims settling sexual abuse claims made against the Boy Scouts.
- Why: If approved, the money would be used to settle around 82,500 claims from people who say they were sexually abused as children by troop leaders.
- Where: The deal has been proposed in a Delaware federal bankruptcy court.
One of the Boy Scouts’ primary insurers has reached a deal to pay $800 million into a fund for former Boy Scouts’ members who were sexually abused while in Scouts.
In a motion filed Dec. 13 in a Delaware federal bankruptcy court, mediator Timothy V.P. Gallagher said Chubb Ltd. unit Century Indemnity Company had agreed to pay $800 million into a fund for victims of sexual abuse.
“Together with the contributions already committed to by the debtors, the local councils, Hartford Financial Services Group, and The Church of Jesus Christ of Latter-day Saints, the size of the settlement trust to compensate abuse survivors is now expected to exceed $2.7 billion,” Gallagher said.
If approved, the $2.7 billion sexual abuse compensation fund will be the largest in the history of the United States, according to the Boy Scouts.
Under the Scouts’ proposal, those who filed claims in the organization’s ongoing bankruptcy proceeding will receive settlements according to the severity of their cases and when the alleged abuse occurred.
Century’s contribution comes after more than a year of back-and-forth between the insurer and the Boy Scouts. The deal would release Chubb from any future liability under the claims.
“Under this agreement, assuming approval, Century Indemnity Company and other Chubb companies will pay $800 million and obtain a broad release for all Chubb companies from BSA-related abuse claims,” Chubb said in a press release.
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.
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.”
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.
The Boy Scouts are represented by Derek C. Abbott, Andrew R. Remming and Paige N. Topper of Morris Nichols Arsht & Tunnell LLP and Jessica C. Lauria, Michael C. Andolina, Matthew E. Linder, Laura E. Baccash and Blair Warner of White & Case LLP.
The tort claimants committee is represented by Richard M. Pachulski, Debra Grassgreen, Alan J. Kornfeld, Iain A.W. Nasatir and James E. O’Neill of Pachulski Stang Ziehl & Jones LLP.
The Boy Scouts Chubb Deal is In re: Boy Scouts of America and Delaware BSA LLC, Case No. 1:20-bk-10343, in the U.S. Bankruptcy Court for the District of Delaware.
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