Delaware judge approves Boy Scouts of America’s $2.46 billion reorganization plan



On Thursday, Delaware Judge Laurie Selber Silverstein approved the Boy Scouts of America’s $2.46 billion reorganization plan to compensate individuals who say organization leaders sexually abused them as children. The plan will simultaneously allow the BSA to continue operating.

The ruling awaits approval from a federal district judge.

The Boy Scouts of America filed for bankruptcy protection in February 2020 following a wave of sexual abuse lawsuits. At the time, the BSA faced 275 filed lawsuits and was aware of many other potential cases.

Approximately 80,000 men filed claims against the BSA, alleging that they had been abused as children by the organization’s leaders and volunteers.

As part of the reorganization plan, the BSA must establish a fund for survivors, the Associated Press reported. Local councils, insurance companies, and troop sponsoring organizations will also be expected to contribute to the fund. Any future child abuse lawsuits related to the BSA will receive compensation through the fund for survivors, and the groups will be shielded from further litigation.

The amount a victim receives depends on several factors related to the abuse, reported lawyers for some of the survivors.

Attorney Jeff Anderson’s firm represented more than 800 alleged abuse survivors. He reported that most of the $2.46 billion would be paid to the victims, but it would likely take several months before the compensation is dispersed.

“Credit to the courageous survivors that this breakthrough in child and scouting safety has been achieved,” Anderson stated.

The attorney explained that not all of his clients would be receiving compensation. Anderson said his clients felt that in some states, the organization “hid behind the statute of limitations.”

Some of the BSA’s insurers agreed to settlements, while others did not. Attorneys for the insurers thought that the barrage of lawsuits was an indication of fraud. They argued that attorneys had aggressively solicited clients to cash in on claims. The attorneys also argued that distributing compensation through the survivor fund would violate contractual rights to contest the claims.

The BSA reported that some parties have expressed that they plan to appeal the order. The organization hopes the appeal process will “allow survivors to be equitably compensated and preserve the mission of Scouting for future generations.”

“We continue to be enormously grateful to the survivor community, whose bravery, patience, and willingness to share their experiences has been instrumental in the formation of this Plan,” said the BSA.

Boy Scouts of America's insurer agrees to $800 million settlement with victims of alleged sexual abuse



Attorneys involved in the Boy Scouts of America bankruptcy case have reached a settlement that would require one of the organization's largest insurers to contribute $800 million to a fund for victims of child sex abuse.

The national BSA organization filed bankruptcy last February in an effort to halt lawsuits against the organization from former scouts who were allegedly victims of sexual abuse.

Century Indemnity Co. and all affiliated companies will give $800 million to a fund for victims of child sex abuse in exchange for being released from any further liability concerning claims of sexual abuse. The payment from Century Indemnity Co., which was announced Monday, would be the largest sexual abuse settlement in U.S. history and would make the total amount of money in the trust more than $2.6 billion, according to the Associated Press.

The settlement has been reached as more than 82,000 individuals with sexual abuse claims must vote on the BSA's restructuring plan by December 28, according to the Associated Press.

BSA announced in July of this year that it would give assets valued at $250 million to the trust supporting survivors of abuse and asked local councils to give $500 million to the trust, according to the BSA restructuring website. Additionally, an updated version of the plan announced in September of this year says that the two large insurers of the BSA have reached agreements concerning their settlements.

The Church of Jesus Christ of Latter-Day Saints and the Hartford have agreed to contribute money to BSA's sexual abuse settlement provided that they are released from further liability regarding sexual abuse claims. The Mormon Church agreed to contribute $250 million to the trust for victims of abuse, and the Hartford agreed on the contribution of $778 million, according to the plan.

If approved in court, the Century settlement would provide additional funds to the trust, including $40 million from local councils as well as an additional $100 million from the national BSA and local councils. The additional commitment can be attributed to growth in membership as a result of charter organizations continuing to sponsor local scouting units, according to the Associated Press.

“This is an extremely important step forward in the BSA’s efforts to equitably compensate survivors, and our hope is that this will lead to further settlement agreements from other parties, said the BSA organization in a statement, according to the Associated Press.

A Message from Eagle Scout and Survivor Jason Lee www.youtube.com