Boy Scouts reach $850 million settlement with sex abuse victims
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[July 02, 2021]
By Jonathan Stempel and Maria Chutchian
(Reuters) -The Boy Scouts of America has
reached an $850 million settlement with groups representing tens of
thousands of men with sexual abuse claims, a major step toward
addressing a deluge of accusations that sent the organization into
bankruptcy.
In a filing on Thursday with the U.S. Bankruptcy Court in Delaware, the
Boy Scouts (BSA) said the settlement with the Coalition of Abused Scouts
for Justice and two other groups covers claims by about 60,000 abuse
survivors.
It said the accord provides a framework for a global resolution of abuse
claims and could allow it to emerge from Chapter 11 protection "late
this year."
"Bringing these groups together marks a significant milestone ... as the
BSA works toward our dual imperatives of equitably compensating
survivors of abuse and preserving the mission of scouting," the
111-year-old nonprofit said in a statement.
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The groups separately called the accord a "significant accomplishment
that achieves consensus" among most claimants, the Boy Scouts and more
than 250 local councils.
Thursday's settlement requires a judge's approval and could face
opposition from insurers that would be on the hook for payouts.
In a court filing, affiliates of American International Group Inc, Chubb
Ltd, Travelers Cos and other insurers said the Boy Scouts excluded them
from negotiations and gave victims' lawyers too much of a say in
crafting a settlement.
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The Boy Scouts of America headquarters is pictured in Irving, Texas,
February 5, 2013. REUTERS/Tim Sharp
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"With only the fox guarding the hen-house, the
outcome is utterly at odds with what BSA itself asserted was
necessary for a confirmable (bankruptcy) plan," the insurance
affiliates said.
Founded in 1910, the Boy Scouts filed for Chapter 11 in February
2020 after being hit with hundreds of sexual abuse lawsuits.
These lawsuits were filed after several U.S. states, including New
York, began letting people sue over alleged sex abuses that occurred
decades earlier.
The bankruptcy filing covered the national organization, not the
local councils.
The case is In re Boy Scouts of America, U.S. Bankruptcy Court,
District of Delaware, No. 20-10343.
(Reporting by Maria Chutchian and Jonathan Stempel; Editing by Ross
Colvin, Leslie Adler and Raju Gopalakrishnan)
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