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Boy Scout Bankruptcy Overview:
- Who: Boy Scouts of America has slammed a report on its Chapter 11 exit plan filed by representatives of those who were sexually abused.
- Why: The Boy Scouts say the representatives are not acting in their clients’ interest by holding up its Chapter 11 plan that 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.
Representatives of the Boy Scouts of America say they are “in disbelief” at a report filed by those acting on behalf of those were sexually abused that says there is not enough support from survivors to approve the Boy Scouts billion-dollar settlement plan.
In a response filed Jan . 11 in a Delaware bankruptcy court, Boy Scouts of America said the tort claimants committee (TCC) was acting against the interests of the sexual abuse survivors its represents by holding up approval of its settlement plan.
“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.
The Boy Scouts argued that the TCC was acting in its own interests by holding up the plan, which it says 85 percent of individual abuse survivors who voted via direct ballot had voted in favor of.
“If the TCC is successful, survivors will receive virtually no recovery in these Chapter 11 cases and the only ‘winners’ will be the TCC’s professionals and those state court lawyers that believe public destruction of the debtors’ plan will yield more for them in individual negotiations pertaining to their cases,” the Boy Scouts said.
TCC Required To Place Interests Of Constituents Above Personal Stakes, Boy Scouts Say
As an official committee, the TCC’ s members are required to place the interests of its constituents above their own personal stake in the bankruptcy case, the Boy Scouts 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.
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.
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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18 thoughts onBoy Scouts Slam Report Challenging Chapter 11 Sex Abuse Settlement Plan
I’m one of those who had a tort claim well before the BSA filed bankruptcy. I was egregiously molested by a professional employee of the local council who was also the camp director. The abuse continued during 2 different calendar years. The local council knew he was a child molester because that’s why he was transferred from his previous council. When one of the prior victims showed up they fired their employee and began a cover-up that included harrassment against me. I was denied my Eagle rank as part of that harrassment. The mass tort lawyers disgust me because their action of recruiting 80,000+ claimants from jurisdictions where they are barred from suing anyone accomplishes nothing but diluting viable claims like mine while giving the insurers a valid reason for not resolving claims. For them, it’s all about their fees [1 billion+]. The BSA is beyond reprehensible because even though they have known about this for 112 years, their SOLE concern is about protecting their assets. They served 5 times as many boys 60 years ago than they do today, yet they now have more than 5 times as many assets as they did 60 years ago. Professional scouters are now amongst the highest paid non-profit executives [CEO receives over 2 million a year]. The plan they’ve created is legally not confirmable [3rd party releases for the local councils and sponsoring organizations], and is simply a vehicle for a bunch of disreputable lawyers to make a LOT of money while telling us victims to stop bothering them – just go away – shut up, bend over and take whatever we give you. Who ever heard of a company going into bankruptcy doing nothing to drastically downsize or reorganize or address the root cause of their problems? Congress needs to revoke the BSA’s charter and get rid of this national disgrace.
For you to say That the BSA recruited 80,000 scouts from jurisdictions that don’t allow them to sue is probably a half truth. In those cases the travesty is that þere is a statute of limitations as t all for such a crime in what is deemed the greatest country try in the world. Physically nor Psycologically can we gage the.trauma that another individual went through in these instances. I’m a.victimand I wasn’t recruited but heard about it and came forward. I stand to gain nothing but the piece of mind that my decendants have better protected. The judicial system as well as well as the BSA SHOULD BE ASHAMED.
I personally just want it over with. It’s been two years I think since I filed. I didn’t accept the $3500 because I found it insulting but same time I dont want it dragging on forever.
The sad part is the BSA has proposed nothing to make sure there are no more victims.As victims we do not want this to continue. Money cannot mend what was taken and I never want some you g person to suffer the terror.
While the total sum of the proposed settlement may well be the largest in history, it is still a paltry sum per individual, and that is simply because there were so many victims and so many bad actors within the organization. The threatening language of the BSA lawyers t felling us that we may not get anything if we don’t settle is further proof of their total lack of empathy for the victims and their sole objective of preserving their vast wealth. I hope that the judge sees this clearly.
While the total sum of the proposed settlement may well be the largest in history, it is still a paltry sum per individual, and that is simply because there were so many victims and so many bad actors within the organization. The threatening language of the BSA lawyers t felling us that we may not get anything if we don’t settle is further proof of their total lack of empathy for the victims and their sole objective of preserving their vast wealth. I hope that the judge sees this clearly.
My perpetrator was arrested four years after I was abused then moved to Hawaii and was requested information on three times before being rejected I just wonder how many other lives he ruined in that time
Forget the money.why are the people who commit the crimes and the ones who covered it up for so many years being procuted by law enforcement..that’s were the justice will take place.knowing the predators and there acompless cant do it to anyone else
How do you place a dollar amount on a person’s pride there dignity there self worth? Well that’s just the tip of the iceberg of what was taken from me. Regrets shame and the feeling of disparity is not enemy way to go thru life. U hear the whispers and walk away because it’s u there talking about. Try it some time be striped of all your feelings and see how it works for u. It’s no joke. Put a price on that. We just want to start living our life not fear the future. There’s not enough money for everyone to walk in our shoes. So have a little respect for those that still and will forever suffer with there true self. Fill free to donate to us if u feel we’re not getting enough. Make a difference be a part of the solution not the cause of hate and discontent. I believe they call that empothy.
As a survivor of abuse by my Scoutmaster I for one am appalled at the ridiculous low compensation offered by the Boy Scouts. The two major insurance companies Chubb ( 800 million) and Hartford ( 785 million) are liable for more than double what they have proposed. The Boy Scouts and local councils can also afford to double their offer of 880 million. The chartered organizations such as the Catholic Church, etc. need to step up and contribute at least 500 million each in addition to the transfer of their insurance rights. Survivors are entitled to be duly compensated for the abuse.
Hell yes I completely agree and I am one of these boy scouts y’all’s talking about it ruined my ? fe
Its crazy how we as abused survivors are getting offered so little compensation but at the end of the day the lawyer’s are the ones coming off on top of the situation they have nothing to lose but everything to gain from this when they are getting 40% of what the abused survivors get which is ashame they only care about one thing and one thing only and that’s money they didn’t have to endure what we went through as children
Here is the thing about it that is MOST frustrating. They literally only did 3 hours of work tops to fill out the paperwork that we could have really done ourselves. All of those with attorneys should all be getting the full recovery amount. They owe it to us to work for their 40%. I don’t know what my attorney is doing to be honest.